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Hi Guys,

I am almost there with my IVA proposal. i have a question about the attitudes of Mortgage lenders, where some of the unsecured debt is with the same lender.

I have a mortgage with Halifax. some of my unsecured debt (about 16k) is with Lloyd s, of which Halifax is part. My mortgage has a determination clause in it. I phoned them today to ask whether they would use it, they said not if i am keeping up with payments. will the attitude change when they realise 16k of unsecured debt is with them?

Hi, not sure of the answer to your question but will bump this up for another poster's comments. x

Not sure what a determination clause is. However, my mortgage is with Santander and when I took out my IVA I had £3k o/d and loan balance of £13k with Santander. Made no difference to the attitude of the creditors and my IVA was approved in November 2012. In fact my mortgage was a fixed rate due to expire on March 2013 with me expecting to revert to SVR at the time. However rang them in accordance with their instructions - 3 months before and got another fixed rate for another 2 years. No mention of IVA and no credit checks required. Just moved me onto new fixed rate. But I suppose it all depends on the lender. All have their own rules I expect

Most secured agreements give the lenders options whether HP or a mortgage. Insolvency often breaches the terms and conditions and potentially on paper there could be an issue. However, in 15 years of working with IVAs I have never seen a secured creditor taking action against a family home where the mortgage is not in arrears. It has happened with buy to let mortgages but even then only if the mortgage company is Mortgage Express or Danske Bank.

I am just in arrears by 1 month. Should I bring this up to date before sending out the IVA proposal? Should I delay the proposal by a week or so to put things in order.

I have alerted Ryan to this post ... He may have an opinion to share.

Hi Grinder,

I too have my mortgage with Halifax, with a similar clause and have unsecured debts with them as well, totalling £8,000.

I ran it past my IP who, like Michael states, assuerd me that this was not likley to be an issue.

Halifax voted in favour of the IVA, and 16-Months in, I have not heard a dickie-bird from the Mortgage-side of them.

Halifax are one of Britain's biggest Mortgage providers. I am sure if they were especially hostile towards their customers, also in IVA's and having un-secured debts with them, we would have heard about it.

There would be no need to delay the proposal. You could make the arrears up by all means and just start your IVA payments a month later.

Hi,

I agree with Michael, have never heard of a mortgage company taking a house, just due to the person owing them unsecured debts. Ensure your payments are always made on the mortgage, and i cannot see why you would have any issues

Hi all,I am trying to get some advice about my interest only mortgage, which still has 6+ years to run. I ha

sorry about that . must have pressed the wrong button!!!! anyway as I was saying, my interest only mortgage has 6+ years to run with no way of paying it off. have been in iva for 64 months (8 to go) and was planning on selling at the end and renting. my problem is my mortgage company have now sent me a letter asking how i intend to repay the mortgage in 6 years. I dont at this moment wish to contact them because i fear that they will start the the ball rolling to force me to sell sooner rather than later. any body advise me of my options? again any help would be greatly appreciated

There is no harm in telling them that you will be selling the property to repay the debt. This can happen at any time in the next 6 years and commits you to nothing now.

Hi Spencer,
I agree with Michael, call then and advise you will sell the property at the end of the term. Sale of property is acceptable as a repayment vehicle.

thanks for the replies guys, another problem is that i only have about £6000 equity, wont they see that as a problem?

That level of equity is minimal and probably excluded from the IVA anyway. Once you have the IVA completed you can do what you like with the house.