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We are coming to the end of our fixed rate mortgage 2 years in to our IVA. My question is do we have just let it revert to a standard variable rate or can we enter into another fixed rate deal? The rates are now lower than the fixed rate we were in. Also as the mortgage is currently a combination of capital and interest only could we increase the capital portion so long as the repayments remained around the same? The standard rate is obviously higher than the fixed rates.

You are free to secure a new deal if the lender will grant one. Some members have had new, lower rate deals from current lenders, others, I am afraid, have reverted to the variable rate. All depends upon your own lenders criteria and policies.

You can get a new rate as it is up for renewal.

Main thing is you look at a deal which allows you to be able to manage everything as you do and more importantly being able to maintain your IVA payment.

There is a lot of information to take in when it comes to new terms and rates with mortgage so would speak to your mortgage provider 1st and work out the best one.

Go for it and try and fix again - it will give you peace of mind during the iva. You may find your current lender will need convincing if they are unaware of your iva.

It’s just a product change, so shouldn’t have any worries in getting the new deal with your lender.

We were able to remortgage at a much lower fixed rate than previously.

The IP allowed us to increase the repayment element and reduce term while at the same time keeping the mortgage payment the same as before - so no increase in mortgage payments so no change to contributions either.

Ye we are increasing our equity but long term it’s the right thing

Hi Barney,

As Lulu and Foggy say unfortunately it's down to the Lender - not all of them will offer you a new rate whilst you are in an IVA.

Best of luck.

Regards

Thanks everyone for your responses.
I guess we shall have to make an appointment and see how we get on.

Let us know how it goes.