www.iva.co.uk

Hi all,

Rapidly approaching 3 years in my IVA ( doesn't time go quick when creditors are not phoning you everyday )

I have an interesting dilemma that I would like some help with, my 5 year fixed rate ends in May of this year and my rate will go from 3.8 to 5.5% apr, this will put and extra £90 per month on my mortgage, that will sting.

When looking on my current lenders web site I noticed an offer that I can switch deals without any credit checks or affordability checks, I phoned them to confirm this and it turns out to be true, I can move my mortgage to a 10 year fixed at 2.8%, this will actually save me £65 per month.

So my question is, am I allowed to do this whilst in my IVA? do I have to inform my IVA company?, there is also a 'BUT' I plan on making a full and final offer when I hit year 3 for the remaining 3 years of payments in a lump sum, if I get a new mortgage my payments to the IVA could increase which in turn would make a full and final offer more expensive.

Hope I have explained it well enough and as usual thank you all for the help over the years.

Bob

If your current lenders are willing to let you do this then go for it ! Any saving will.reflect in your next income and expenditure review and may result in an increased payment to the iva depending on other costs that may have increased.

Switching deals is not obtaining credit so no need for your IP to know. The savings would be picked up at the next annual review but likely offset by increases in other areas. The deal you mention seems excellent so personally I would grab it and worry about the settlement later. I am sure petrol, council tax, food, heating etc has gone up by more than £65 anyway so your surplus should be unaffected.

I agree -- grab it while you can --- IVA apart, Brexit uncertainty means mortgage rates could be all over the place in the coming years, so peg them now if you can.

On the F&F front, you will be shaving 2 years, possibly three if you get an extension for equity, off the term, which, in turn, will save both the creditors and the IP a lump in administration costs, so the F&F offer will be slightly less than the total payments outstanding anyway.

In any event, a small sting now, if it came about, would be far outweighed by long term savings once clear of the IVA.

Thanks guys for the help, im still in shock that I can get this deal but as you all say I will grab it whilst I can.

Let us know how it goes - fingers crossed it all works out for you - its a good offer x