we have been on interest only on our mortgage since we started our iva now our mortgage company say in august we can not continue with this. going up to full payments will cripple us any idea on what we can do now. at my wits end and causing sleepless nights.
If this means you do not have a surp;lus left your IP may call a variation to close the IVA down as full and final. However, check to see if the mortgage company have the right to do this or are they just putting you under undue pressure.
Hi debtfairy - welcome to the forum as don't think I have posted on one of your threads before.
Sorry to read about the sleepless nights, I am not surprised with that kind of pressure. Depending on what your IVa payment was, as Michael says this may eat up your surplus income, or it may even put you into a minus figure excluding the IVA. Get full understanding from your mortgage company first as to whether this is a definite change due in August and work out where that leaves you financially. If you have no money left for an IVA payment, depending on how long you have been in your IVA your IP may be able to the payments to date to settle the IVA or if there is a smaller amount of surplus left they may be able to get a variation with an extension. If there is nothing left and a settlement is not agreed then your IVA will have to fail and you will need to look at alternative solutions. If you have anyone that coule help out with a small lump sum this may prevent the IVA failing and allow the IVa to be settled early. IVa aside, if the change casues you to not be able to cover living costs then hopefully your mortgage omcpmany can work with you on an extension to your mortgage so you can still cover all your monthly living costs.
Either way I really hope you can get something sorted asap between your mortgage co and IP and have no more sleepless nights. Do let us know how you get on.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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The same thing has happened to me from the Halifax. I am on interest only however it will go up to capital & repayment at the end of September 2012, which is why I am now selling the house rather than being forced to go bankrupt or having the house repossessed. The Halifax will only allow you to be on interest only for 3 years if you are having difficulties in paying and my time is up. If I can sell the house before the end of September, at least my IVA creditors will receive a better dividend than having the house repossessed or being made bankrupt. As far as the Halifax are concerned, they are NOT concerned about my IVA, it is not their proirity. A very hard decision to make, but I know this is the best option for me. Everyone is different and I do hope you will find the best solution for your circumstances. Let us know how you get on
This is going to be a problem for a lot of people in ivas and as the experts here have shown, your IP will be well versed in how to handle the situation. Have a chat with them to work out your plan of action x
