www.iva.co.uk

Hi all,

Can someone please advise if whilst in an IVA, you take an agreed 1 month Mortgage Payment Holiday to cover repairs do you get to keep / use the whole of the mortgage payment or do you have to pay a set amount into your IVA pot?

Many thanks.

Hi Sinking Fast,

Technically you should declare any payment break and it should be paid across to your IVA.

If you can justify the need for the money to be used for repairs you may be ok.

Hi - you would need your IP's permission before applying for a mortgage holiday. If you have essential repairs, you would be better off speaking to your IP and maybe trying to arrange a payment break/ reduced payment into your IVA.

Not sure I agree with that one Julie!!

If there are two options - payment break to IVA or mortgage company, I think that most IPs would recommend the mortgage be waived first - as the impact of one missed mortgage payment would be probably a lot less the impact of a missed payment on the IVA.

But everyone is correct to recommend prior discussion with the IP first.

Melanie - I'm only repeating the advice we were given by hubby's IP. He wouldn't allow us a mortgage holiday and insisted on the IVA break!

Little wonder the IVA failed!?!

If you take a payment break though Mel, should you not pay this across to your IVA?

No - because you would be taking the mortgage break for a specific reason - ie to meet an unforseen payment, and there would presumably be no money to pay into the IVA?

I stand corrected! I know that I can't take a mortgage break, but presumably if I wanted to do one just to get some extra money for nothing in particular, that should be paid across?

In theory yes - but what would be the point? And by doing so you would be diminishing equity which eventually could be available to creditors.

It was theoretical as I can't do it anyway (I did query it a couple of years ago).

Just curious.