www.iva.co.uk

Hi my husband and I are in an iva. We are feeling trapped at the moment as we want to relocate. My husband has the chance if a new job near where we want to relocate. I am feeling cut off where I live. I have a chronic illness that has no signs of ever getting better. At times I do not feel safe to drive so can be stuck in until someone can take me out to the shops or anywhere. My husband is out the house 13hrs a day in his present work so the days are long on my own. He doesn't like leaving me for that length of time. We want to relocate to a town where I can just walk out to the shops if I need to. We put in an apication gor the right to lease our house out so that we can rent elsewhere. We have been told today that we can't do that while we are in the IVA. We don't see what the problem is the iva will still receive the same payments and the mortgage will still be paid. Can anyone tell us if we are trapped or if there is anything we can do to allow our relocation to go ahead. Thanks in advance.

What reason have you been given for renting your house out and moving onto rented yourselves in a better location ?
Was the decision made by your IP or a caseworker?
I would challenge this decision - demonstrate on paper that the changes would not financially hinder your iva and that it is a plausible decision etc.
It seems a perfect solution to me in a difficult situation - let us know how you get on

Was it your mortgage company who said you could not rent out the house or your IP?

Yes Michael it was our mortgage company.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples

Was it your mortgage company who said you could not rent out the house or your IP?

The mortgage company would have their own criteria but perhaps they might reconsider if they received a letter of comfort from your IP and no objections. If they will not reconsider there is little the IP can do as they could not force the mortgage company to allow you to rent out the property.

Speak to the mortgage company again and ask them would they reconsider if your IP confirmed that they are happy with the proposed move and home rental.

Thank you Michael I will. I have just been reading g through my Iva terms and the payments are set for 59 Monthe after this point is it right that they do a valuation in your property to see if there is any equity in it? If so how much can they ask for is it a percentage?. Our house is in negative equity at the moment due to a secured loan we have on it. As i inderstand it If there isn't any equity you contunue payments for one more year. If we could get the money together for a full years payments by then would we be allowed to offer that as final payment and end it at the 5 year point? Thank you

If the property is in negative equity there would be no extension and the IVA completes after five years. The extension is for where there is equity but you are unable to remortgage to release it.

If you can raise a lump sum you could offer a full and final sooner than at the end and given the medical circumstances creditors are usually sympathetic and would likely consider a reduction from the total amount remaining.

Oh thank you this has cleared up a few questions that have been floating g around in our heads. It doesn't make the end date seem that far away now. Thank you everyone

Lenders tend to have hard and fast rules when it comes to these things although you could put in a formal complaint....use words like 'Treating Customers Fairly' which is a real focus of the Financial Conduct Authority (FCA) who regulate the lenders. They owe you a duty to look at your individual circumstances and not just knock you back simply because you are in an IVA.