How does an iva affect my mortgage?

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sarah_j

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Post by sarah_j » Wed Jul 09, 2008 3:43 pm
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How does an iva affect my mortgage? I'm being made redundant at the end of the month and am slightly worried if i dont get another job i will be struggling to pay everything. It is a fixed rate mortgage for 3 years ending sept 09
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pbeck

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Post by pbeck » Wed Jul 09, 2008 4:03 pm
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Sarah

An IVA shouldn't affect the mortgage if you stick with your existing lender, if you try and remortgage with someone else once you're already in the IVA then you'll have difficulty as it will appear on your credit check and you'd probably find that you have to go to a "sub-prime" lender who will charge a higher rate of interest if you change mortgage companies. Hopefully your existing mortgage company will offer you a suitable deal once the existing rate ends.
Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist since 1996.
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MelanieGiles

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Post by MelanieGiles » Wed Jul 09, 2008 4:51 pm
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Are you already in an IVA Sarah? Whilst the IVA will not affect your mortgage, your mortgage may well affect your IVA - and if you are considering this as an option at the moment make sure that you provide for the increase in mortgage payments from Sept 09 onwards.

It will be very difficult for you to find any better mortgage than your current lenders variable rate - if the mortgage market does not improve over the next year or so, so best to budget for the increase now.
Regards, Melanie Giles, Insolvency Practitioner
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