www.iva.co.uk

I am 3 years in to an Iva, it's a single arrangement with the exception being the mortgage which is in joint names. We took out a 100% mortgage in 2006 80% was secured with 20% unsecured. So my question is this. I was advised to stop paying the unsecured element of our mortgage which my wife refused. So in essence we have not missed a payment.and paid our mortgage as normal. Our breakdown of payments shows payments made to our lender. As we are not in default is this classed as overpayments.

The unsecured element is also a joint debt, for which your wife is also liable, so I think she was correct in refusing to stop payments.

If your wife is making full payments, which she is required to do as this unsecured element is also in joint names, your IVA dividend to this creditor could be classed as an overpayment in the fullness of time. However, whilst you are in the IVA the lender will probably not recognise them as such due to the reduced security on the debt ( they now only one debtor liable, instead of the agreed two), so would hold the payments on account to offset a potential default.

Your wife, by paying your "share" of the joint debt could also become one of your creditors for that portion she is paying "on your behalf"

Thank you for the reply. Will this have any detrimental effect on my Iva when it comes to finishing it in 3 years time?

It will do no harm to the progress of your IVA, but the joint debt will survive and will not be written off like the others.

The dividends from your IVA will go to the unsecured element of the loan and thus reduce the balance. At least this will shorten the term of that part of the mortgage in due course.