www.iva.co.uk

Hi All,
I think this may have been covered before but I have a question regarding changes to IVA payments.
Lets assume that an I&E has no changes to when started EXCEPT for the mortgage going to SVR and becoming lower, this saving passed to IVA and thus increasing the monthly payment, NOW suppose the SVR rate changes and the mortgage goes up, will the IVA payment be able to drop pro rata? I understand that the payments can be lowered by 15% but is that by 15% of the initial IVA payment or of the current payment?. OR would there have to be on going variation meetings every time the SVR changes and who would bear the cost?

I hope this makes sense

Hi Darkdog, nice to see you, hope you are well.

I believe that your IP will be able to drop the payments again, but not sure by how much. I think it is something that a lot of us will be coming up against in the next year or so.

Hopefully one of the experts can catch up with this one.

Hi Kallis3, thanks, yea good thankyou, can't believe it's almost a year, and yea I need to decide on re fixing the mortgage or let it track

Glad you are ok. Can't believe it's been a year!

I think you need to think long and hard about this as interest rates are going to be going up in the not too distant future.

Commen sense says you can only pay what you can afford.
I'd say to email your ip each time it rises.

The baseline that IPs work to is the level of payment accepted by your creditors - so if your circumstances change, discretion can be provided to a reduction within 15% of the original payments - thereby giving more flexibility if your payments have been subsequently increased.

Thanks for the replies, I think on balance it will be easier to continue with a fixed rate for the next few years, I do expect the current rate to increase slightly as inflation rises but not to the level I will be fixed at, but a least I know what the payments will be for the next few years

As your iva explicity mentions you switching to a svr mortgage and payig over the saving you need to check with your ip that you can fix. And also that savings are not being banked on to reach your dividend, or you could fall short at the end.

Our fixed rate ends in April and i am really hoping to get antoehr fixed rate for at least two years if not 4. 4 would bring it in line with the equity clause time.
It does worry me about the payment fluctuating if we don't get it sorted.