www.iva.co.uk

Having started the process for the iVA with Mel and team I have recieved a mortgage booklet today and in it it states that you would have to repay full amount if you enter a voluntary agreement

It is a BOS mortgage It has freaked me out really bad that after all this we will lose the house

Any advice ??? Please very desperate

Have spoken to Mel since on this so feel a bit better
Also concerned though about my nationwide account i just opened
Feel penalised for wanting to sort debt out

What is the issue with the Nationwide account?

Hope Mel has settled you about mortgage...i can imagine the fear getting a letter like that would provoke. Whats your worry about nationwide? I feel victimised for trying to sort debts...banks seem to treat us like lephers!!! Its only because they cant screw us anymore as we cant get OD/CC so they then wont get any extra from us in fees/interest!!!

Ox what r u concerns about your nationwide account ? ... We've got the basic nationwide account ( opened prior to iva acceptance ) and have no issues with it .. On line banking great , can use debit card anywhere and have access to real time balances. Have no problems with it so far ?

I was worried about them cutting of the account I opened the basic flex account pre looking at this and am in process of moving dds

The mortgage piece has really thrown us now though and makes us think it wont work.

Ox it would be interesting if you could expand more on your banks new rule regarding entering a "voluntary arrangement"......could this be the beginning of banks cutting off the IVA route for homeowners?

Hi Ox1987,

I too have the same fears with the mortgage and posted last Friday night about it. I found our mortgage terms and conditions and it says the same thing, we are with A&L which is now Santander. I contacted Mels team and Amie did her best to reassure me that this has never happened but obviously no guarantees can be made. Can I ask what advice you were given? It is still a worry for me too I cant stop thinking about it.

If this clause is correct then I can't see why it would be of benefit to your mortgage company, after all in an IVA the mortgage payments are protected and at the very least are made more affordable by a reduction in overall payments to unsecured creditors during the IVA period......allowing clients not only to keep their property but also saving the bank from having to foreclose on what could possibly be a property (in some cases) with no equity.

Strange!

(Never even looked for such a clause in my mortgage terms & conditions but suppose it could still be in there....will have to check it out.....albeit a bit late)

I spoke to Mel and she said the same as Amie but if I wanted a concrete answer then I need to call tjr bank itself

It says that full repayment will have to happen immediately if a voluntary agreement is commenced with creditors and debts cannot be repaid

It made no sense to me as they would not get their money back but has prevented me from sleeping all night and questioning whether we will have to go bankrupt

My mortgage terms & conditions booklet goes back to 2004 so I am hoping that with the current climate they are a bit more flexible. I am scared to death to contact them to ask the question as I fear the worst. God only knows what I would do if they say that it would be at risk, I couldnt face going ahead with the IVA. Then what would I do with all my debts? Its a horrible position to be in.

Just know we are not alone in this, as horrible as it may be its good to know others have the same concerns and im not alone awake at night! x

So what are you going to do I am also too scared to phone them

Maybe one of the experts could contact them with a blanket query ( I am sure they have contacts they could speak to ). Obviously it would only be a generic question and response -- but just to see what their current attitude is.

For the record I have not seen anyone dispossessed due to this problem and I am sure they would shout out if it had happened.

Currently I am waiting for my proposal to come through from Mels team, my partner thinks im worrying about nothing and if it was common practice then there would be a lot of horror stories around. I have googled everything to do with ivas and this has never been an issue that was raised so I presume we would be ok...but im that person that things happen too! I am on Santanders website now trying to find an email address to contact them that way...its always easier than a phone call! Off to work now so may do it later today.

Have a good day and lets try not to let ourselves get too worked up.

Email sent will await a reply in about 2weeks!