mikepapa wrote:
Hi everyone, The Mortgage rate is our biggest concern come next July/August when we come off our BOE tracker rate,, our mortgage will go up 3 fold. Other than selling the house to try & offer a full & final I dont think we will have any other options.
I cant see us managing our current IVA payments with a big hike in mortgage payments,, but we will see what the year brings,, we try not to get to dis-heartened about it.
Hope everyone is well & coping in these very difficult times,, I still pop in from time to time.
your case will be in no way unique and it highlights the problems people will have. You have gone for an IVA probably to protect your home and because of the banks going belly up you may have to sell anyway. Is this going to cause prices to drop? Lots of people having to sell up as they cant afford the mortgage??
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi,
I am just in the process of (hopefully) setting up an IVA. Like many, our fixed rate deal ended last year. We did actually see a drop in our payments as we took out the deal 3 years ago when rates were higher, and are now on a variable rate. But reading through your posts concerns me. If our mortgage payments did go up, would our IVA payments be reviewed and go down, or is that not necessarily the case?
Why is nothing ever straight forward!
If your mortgage payments go up and you are struggling then you would have to get in touch with your IP and see if you could get the payments reduced.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Anything that impacts your ability to maintain your IVA payments should be a concern. If you have any doubts as to what may happen talk to your IP soonest.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Give a 1% rise equates to £100 a month on a typical £150k mortgage this is a huge concern and one that I don't think any IP has given a firm answer on.
£100 per month cannot be absorbed (even within the IPs 15% discression). So what happen? Everyone with a current IVA proposes a variation at the same time? I don't think so.
Any constructive views as I dont think it is acceptable to say, we will worry about this when it happens.
I must admit that although it is something I think about, I will probably worry about it at the time.
We also have the added worry that hubby will become an official old git at the end of next year and our income will go down - not looking forward to that either.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Jan, Fantastic to see that you are still dedicating so much time to help others on this forum. Yourself and skippy did so much for me I know how important this forum is to those in the darkest days of debt realisation.
Cant believe it has been 14 months. So far so good, annual review was unchanged. I have actually had a pay cut (about £100) but working overtime to bring it back to my original level.
Forgot about your penchant for older men, hope you are both fine and shouldnt be much longer for you now.
Yes, Skippy I am a different person to the start of last year. Everything looking up. As expected some ups and downs. Just keeping my head down and thinking how well off I will be at the end of this.
Although not posting I read the forum regularly. Anyway dont want to take over this thread with personal chit-chat but I have e-mailed the site through contact us. Is it you who pick this up?
hy i work for the jolly nhs and 90% of the staff are getting no wage rise for 2years..thanks to the present govenment.im in the 10% (lower grade) and among the very few getting a 7pence per hr wage rise wow!!!
Same with me Swardean, I'm available off forum as well.
I'm public sector as well and won't be getting a rise for the next few years.
I shall just have just have to grin and bear it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I may be getting one this year, but then it will definitely be frozen.
Still waiting to find out for definite.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The issue of rising mortgages is one which will affect most people who are property owners and are in an IVA, when this eventually happens which I feel is likely over the next 12 months.
I feel that the IVA protocol ought to address this, given that creditors are already telling us that they are seeing far too many unecessary variations, and unless contributions were to drop to an unrealistic level then I feel that the following steps ought to be sensible:-
1 For repayment mortgages clients should ask if they can revert to interest only. Evidence of such request to be put in writing.
2 That IVA contributions be reduced in direct proportion to the increased mortgage payment (subject to a full review of client's circumstances at the time)
3 That providing contributions do not drop to below £150 per month, the IVA is to continue without a need to vary
4 In the event that contributions do drop below £150, the IVA be deemed completed by nature of the payments already paid in an distributed to creditors.
What do other forum members think - would this work in practice?
