I have been in an IVA for 2 years now and apart from 2 variations I had to make (lowered my payments but extended the IVA to 6 years) when my partner had to give up work due to ill health, everything is going well so far.
However I had a letter this morning from my bank saying that the interest rate (SVR) will be going up from 2.99% to 4.5% in two jumps between now and September 2012.
I have an interest only mortgage and so in real terms this mean an increase of £120 to my mortgage payments per month which I'm not going to be able to afford.
I'm not sure what to do or where to go next as I'm very scared that I am about to make myself and my partner and daugher (both disabled) homeless.
Is there any help or advice that people have as to what I can do in this situation please ?
Thank you in advance for any replies,
Jon
30th Dec 2015, the day the IVA ends. What a New Year that will be !!
Contact your IP to discuss a reduction of your contributions in line with the increase in the mortgage. Its not something you have any control over or say in. How much is your IVA a month just now?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
is it not just the SVR limit they can charge that is increasing?? Meaning that a rise in rates is likely to follow but for now are they not just saying in the future we can now charge blah de blah??
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I'm with Bank of Ireland, they are increasing the SVR that they charge by 1.50% to 4.49% in two stages, first by 1.00% in June then another 0.5% in September.
I spoke to my IP and the increase wipes out my IVA payments by all but £30. She advised me to talk to the mortgage lender to see if I can fix things as they are or to see if I can get a different deal from them. I will give them a call and see if they are willing to do anything, I hope they are able to help, if not then I really don't know what I can do.
Jon
Last edited by jonmitch on Wed Mar 07, 2012 3:11 pm, edited 1 time in total.
30th Dec 2015, the day the IVA ends. What a New Year that will be !!
Its hard to see how an IVA could be sustained with such a change in available income in my opinion. Is there much equity in the property,or have you anything else that could be at risk if you went bankrupt?
You have to be realistic about things,and while the IVA was a viable option when you started,a £30 a month contribution is not going to stretch very far.
Sorry its not better news. Did your IVA firm not have any other helpful hints other than try and get a cheaper mortgage(you wouldnt get much better than 4.49% anyway!!)?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Thanks for the replies all, I guess it's not going to be good news.
I have no equity in the property at all, in fact I have quite a bit of negative equity.
The IP said that if I couldnt get something suitable sorted with the mortgage lender then I should contact her again and we can talk about what other options are open to me.
I guess it's going to be bankruptcy, but if this means losing my house then I really don't know what I would do next.
It's all been fine until now and I haven't felt this scared and depressed for over two years since I first realised I had a problem with my debts.
Jon
Last edited by jonmitch on Wed Mar 07, 2012 3:38 pm, edited 1 time in total.
30th Dec 2015, the day the IVA ends. What a New Year that will be !!
Thanks for giving me that info regarding the house - I just automatically thought that it would get taken away. I'm going to contact the mortgage company tonight and see what they say, but I don't hold much hope.
As you quite rightly say - I have given the IVA a good go but circumstances have changed and so another option is probably my best course of action.
Thanks Paul for the advice,
Jon
Last edited by jonmitch on Wed Mar 07, 2012 4:03 pm, edited 1 time in total.
30th Dec 2015, the day the IVA ends. What a New Year that will be !!
It may be possible to get creditors to accept what has beed paid to date as full and final settlement. The return would be low but better than bankruptcy and you have tried your best. Worth a shot.
It's a shame if you weren't advised that bankruptcy would not mean losing your home before you entered the IVA, or even when your circumstances changed and things became difficult.
As others have said, you have made every effort to keep the IVA going, if it has to end you go bankrupt then you know you gave it your best shot.