www.iva.co.uk

Just had an interesting conversation with a large mortgage packager who informed me that lenders are increasing the rates at which they will lend by an average of 1% on all products including squeaky clean applications, indeed one lender has emailed me saying there is an increase of 1.25% on all their products right across the board from clean to very heavy adverse. This will without doubt see a large increase in monthly payments for us, so if you are in the process of re-mortgaging get your broker to move swiftly, insist on no penalty overhang which is ideal when coupled to a fixed rate and gives the opportunity to shop around penalty free at the end of any preferential rate, this is my personal choice. Tony

That's shocking Tony - and very frightening for anyone who needs to re-mortgage out of a fixed package who are already in an IVA. We will have to be prepared for many variations I feel, as clients will struggle to meet their IVA payments as a result.

Nice to see you back on the forum by the way!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Tony

Hope you are in good health again now.

Does this mean high st lenders as well as sub prime? If so how will it affect their base variable rate. I understand from Nationwide that their rate is guaranteed never to be more than 2% above Bank of England rate. I think its currently 7.25% so could only go up to 7.75% at current rate.

Regards

Dave

Hello Dave

Hope things are going well for you, in answer to your question the packager I was speaking with (packagers are companies that brokers use to source lenders and rates) is not only an adverse packager they have mainstream (high street) deals also and told me they are experiencing lenders offering rates on a Monday and withdrawing them after a week. I haven`t seen this type of activity before and I think Melanie`s point re those of us in Iva`s needing to re-finance is of particular concern. Dave what`s happened to your lot? Tony

Hi Tony

I remember Aug 1992 when we lost to Sheff Utd away 1st game of the season. I then sat at Old Trafford and watched Everton beat us 3 nil before getting a draw against Ipswich. We went on to win the League that season and I'm hoping we'll do the same again this time. I think this season there will be shocks early on as the other teams have improved but strength of depth in the squad will tell from Xmas onwards.

Regards

Dave

Hi Dave
Hope you are feeling ok.
A question!
We have 4th year equity clause assuming we can raise a minimum of £10,300. otherwise the creditors want us to pay for an additional 12 months(giving them a better return)
Currently we owe £186,500 on a property realistically valued at £190,000 (three mortgage products, one 10 year fixed rate expires 2016, the other two fixed until next September by which time we will have been in IVA for 13 months)
Have you any thoughts about what our best options are?
Advice would be most gratefully received!
Blue

I suspect that this is directed at Tony - but I am sure that Dave will give you an equally sensible answer!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

The glorious Reds will be back! I feel that it's an omen - 1992 etc!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Sorry Melanie, been one of those days!(Two of the girls got too much sun!)
Tony, forgive me!
Above post meant for you!
Thanks
Blue

Hello Blue

If your property is worth £190,000 and you currently have £186,500 secured against it I don`t think using this criteria there is scope to remortgage to capital raise. You would need an increase in property value to give you some leverage to get a deal for yourselves, basically because the loan to value is too high.I would take a view in 13 months when your current fixed rates end (September next) and providing you have no overhang penalty and you have the blessing of your IP take a look then. Hope this helps. Tony

Hi Blue

I agree with Tony. Lol

Dave

Thanks Tony, Thanks Dave!
IP is Melanie, so no doubt we will sort something sensible out!
Thanks
Blue

Thanks Tony, Thanks Dave!
IP is Melanie, so no doubt we will sort something sensible out!
Thanks
Blue