www.iva.co.uk

We have been on a tracker interest only rate, this will finish end of feb. We have called our mortgage company who has suggested a repayment mortgage can I do this on my IVA?

Any help would be appreciated.

There shouldnt be a problem as long as you can still maintain your IVA payments.

the repayment works out less than we where paying on interest only, when we started the IVA, so I am thinking I might look into this further.

Also have a word with your IP and test the water.

Good luck

Remember that a repayment mortgage will potentially leave you with more equity to raise during the final year.

so would i be better off staying as I am, and perhaps making bigger contributions to my first plus, my secured loan on my property, for the period of the IVA and would this be allowed. I am very confused! I am just not too sure what I should be doing.

I cannot provide advice on mortgages or secured loans, because I am not professionally qualified to do so. The point that I was making was that if you start repaying the capital off your mortgage, or increase the capital repayment to your secured loan, then you will possibly be creating a higher level of equity which then leaves you potentially exposed to taking out further borrowings at the end of the IVA, if you have those provisions within your proposals.

As Mrs Skint says - speak to your IP.

gill.p

Your IP I think is the key to the question as to what you can or can`t do in your IVA, if your lender would lend on a repayment basis then there should be no reason why they wouldn`t lend on an interest only basis.

Your point was can you do this in your IVA, I would look to your IP for guidance. Tony

Either by making a repayment mortgage or paying your secured lender more now will create a bigger equity in your home at the time that you have to realise the 85% (or whatever your proposal states) in the final year. As other posters have stated discuss options with your Supervisor (IP) and come to a compromised agreement that does not make you worse off.

I would think very carefully before switching to a repayment mortgage. As the others have said by switching to repayment you will have more equity to release at the end of your IVA. You need to think about how this will affect your mortgage payments in the long term.

I switched to repayment just before taking out an IVA. If you don't switch surely the reduced payments will increase your IVA payment significantly at the next review?

Depends on how much they are reduced, and whether you have any increased expenditure.

Not everyone will benefit from the new lower rate.

Hi
I agree with Stony, if you stay on interest only your disposible income will increase and your payments will increase in your IVA [if not swallowed up by increased expenditure ]. I would go onto repayment.
Regards

Andy, would you do that even though there may be more equity to release?

I'm not trying to suggest anyone avoids paying money into their IVA, just looking at all the implications.