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Are you allowed to take a mortgage repayment holiday while on an IVA? I'm also worried that my mortgage is with Northern Rock (together mortgage) but they are putting the unsecured element in the IVA proposal and I'm worried that NR could take the mortgage off me.

Hi
They will not take the mortgage off you as long as you pay the secured element, so stop worrying.
As for a mortgage holiday, I think that you will need to ask your IP permission as you will effectively be increasing the mortgage balance by taking a break.
Regards

Thanks Andy!!

Would the same apply to taking a payment break from a secured loan as well Andy?

Your IP would need to know if you took any break from payments as it would affect your surplus income. The IVA is based on secured creditors being paid and if this does not happen there must be a problem of some sorts that the IP must be made aware of.

Thanks Michael.

Not planning on doing it, just wondered if it was the same as with a mortgage.

I had a together mortgage with Northern Rock, the unsecured part went into the IVA. You will not be able to take a payment holiday, if you do request one then they will want written permission from your IP. We are in our final year of the IVA, we have had no problems with Northern Rock throughout (apart from our statement always included the unsecured loan in the total amount outstanding with the mortgage)and they have now sold that unsecured part to another company and we just have our mortgage with them[8)].

I have a flex mortgage and was advised by my IP that I could 'dip' into my equity fund in the case of emergencies. Although emergencies were not specified.

kallis3 wrote:

Would the same apply to taking a payment break from a secured loan as well Andy?

Would that affect the equity in the property?? I dont know much about secured loans.but if it didnt then I cant see why you couldnt take a holiday from a secured loan(although would lenders allow it??)

Paul

I suppose it would affect the equity, as it's secured on the property and they would have second charge if the house was sold.

I have had a payment holiday from ours in the past - we could then either add the payment on at the end, or just adjust our monthly payment slightly.

Not done it since the IVA though.

I know its not a secured loan but when I took a payment holiday from egg they asked a lot of questions and ran through my income and expenditure to ensure that I wasnt struggling with my outgoings(pity I told a few fibs,may have got us straightened out earlier).

All I used to do was phone up, tell them which month I wanted to miss, and that was it. They never asked what it was for.

Ditto Jan, may be more interesting if we try now in an IVA

We took a 1 month payment holiday from our Northern Rock mortgage in the period between deciding to go for an IVA and actually signing up for it thus giving us a little nest egg to begin the IVA. Don't know what they would say now but it is written into the mortgage agreement with Northern Rock so, as long as you meet the criteria, i.e. no arrears etc I think they would allow it. As Jan says, it is done in 2 minutes over the phone and agreed there and then. I doubt there is any check beyond being a good boy regarding your mortgage payments.

Hi John, it would be useful. My IP told me they would be writing to my mortgage company regarding my IVA. Hopefully this will not be readibly accessable by the flex desk.

Although, it is written in the terms of your mortgage is it against the rules of your IVA. Is it seen as additional credit?
Who knows?