www.iva.co.uk

I don't know yet whether my building society will be cutting my rate after the drop today.

I am on a repayment mortgage.

My question is, if they do drop it, do I have to take that cut and pay money across to the IVA, or can I leave my mortgage payments the same and pay a bit more off?

You ought to be able to leave the payments as they are Kallis - but as you are in an IVA, your IP may not be happy with that. And if you have a final year equity release provision, by paying off more you are potentially increasing the equity which you may then have to raise - and that will involve a higher mortgage for a lot longer.

the thing that concerns me is if ip`s increase with the dropped rates and then next month they go up because they do !!what then when creditors expect more cash?

I don't think it very likely that interest rates will go up for some time - but the principle of an increase would provide for a further review of income and expenditure.

I hadn't thought about the equity release Melanie. The only thing I would say about that is that because of our ages, I doubt we would get a remortgage when it comes to it. Hubby will be 65 and on OAP and private pension, and I can retire at 60 if I wish.

I think I'll speak to my IP as and when the situation arises.

We have a fixed rate mortgage, so won't make much difference to us.. i'm more concerned about the interest on my savings!! oh forgot haven't got any....

these rate cuts do they make secured loans from the mortgage company go down also?

Fixed Rates won't change. Variable mortgage rates will and should happen fairly soon. Other loans - depends on terms of same.

They ought to creditcrunched - but at the end of the day it is down to the policy of the individual lender which will dictate whether the rate reduction will be passed on.

I hope NR pass it on - we could do with a reduction in mortgage payment, however slight.

We're on a fixed rate until next summer, so expect interest rates to rocket around that time!

thats just my luck too, skip!! sods law!!

thx[:)]

david you say fixed wont change but i thought the idea with fixed was it was a bit higher than the % at the time for the deal and if it goes up you are ok it stays at the fixed rate ,but if it went down you got the lower rate?? i only say this because mine is fixed but i keep getting letters saying the interest rate has changed and new monthly payment will be such and such??

Then you are probably on a variable rate that changes as and when interest rates go up or down A fixed rate is one for a fixed period which ends in 1 2 or 3 or more years and could be costly to try and change before its period end.

melanie, the equity release, agreed at the start of the iva, is that worked out on what the house is worth at the time and if the value increases, does the equity release? bit confused.(is it a % of the value when you look to re-mortgage)??