My mortgage period is coming to an end 1st Oct. and will go from 6.3% down to 2.5% giving me a savings of £500ish per month on interest only payments. What do I do...get new agreement for principal to pay same as before or tell IVA practitioner and give them the £500??? Tried re-mortgage back in March and banks would not lend 85%...went through synergi sister company but failed???help!!!!!!
Hi
You will need to increase your IVA payments by the amount saved. You can look at another fixed rate but remember that you will need to remortgage in the final year
Regards
How about looking at part interest and part payment. At least you will start eating away at that mortgage. If the average home has lost £20-30,000, better putting that money in the house. This way you may have some still in the house after if you have to re-mortgage in accordance with your IVA in the 4th year???
A lot of people are saying the interest rates will soon go up next year and a lot of people have only got variable's (strange that the banks are pushing a lot of people on variables[:(!]) which are currently a good thing, but not when the interest rates go up half % and the Banks up it to 4%. They will be wanting to claw some money back no matter what and they can as they are still not regulated and can do what they want[:(!]
Very murky waters if you ask me.
Not sure what happened but I am all paid up and finished...they even owe me money now ))
Why don`t you contact your IP and ask them if you can continue making the same payments into the mortgage.
You will then in theory be making overpayments and as such reducing the capital debt which will help you to make a potentially better return to your creditors in year 4 because you would have reduced your mortgage balance against the value of your property.
I don`t know if this is actually possible as I am not an IP but it`s just a thought.Tony
F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Debt Advisory 4U
Principal : All Mortgage Products
Your IP will no doubt expect you to increase your payments by the level of the mortgage saving - on the basis that creditors should not be expected to fund the increase in your capital asset - ie the equity in the property. If you have an equity release clause, you could just be setting yourself up for further borrowings in the final year by doing so - even if this were to be allowed.
))
