My wife and I are in an IVA - we have just received a letter that our interest only mortgage is going up from £440 per month (was 4.79%) to £689 a month (now 7.49%). I have spoken to the building society and they are not prepared to discus a further fixed rate deal. I have written to our IVA provider and await a response. Clearly this is a phenomenal increase and wonder what alternatives we have. Anybody re-mortgaged with an IVA and if so at what rate?
Were you aware that your mortgage was due to change at some stage during the IVA, and what advice did your IP give you at the time as to how this might be dealt with?
It sounds to me as if you will need to put a variation in front of creditors to see if you can reduce your IVA payments. How much are you currently paying each month to the IVA?
There are only a few companies which will now lend to persons subject to voluntary arrangements, and you are unlikely to get a better deal than 7.49% to be honest.
We were aware that our special rate would cease from 1st October and when pointed out to our IP I was told that "we would deal with that when it happens". We pay £228 per month at the moment and of course as we all know costs of living have risen, however this mortgage increase will more than double what we currently pay out to our IVA.
Another thought is the sell to rent back schemes, although my research tells me that they are unregulated and fraught with potential dangers again would our IP agree to this?
Hi - Sorry you're in this position.We too had to come out of a fixed rate during our IVA. Our rate is now 7.49 and that was with the help of Andrew @ brightoak. So to be honest I don't think there are any better deals available.
We were lucky we could change to interest only and my increase in wages mean we can manage the increase - just.
However, our IP did say they would call a variation meeting if need be as they were aware of the fixed rate ending. Was your IP aware of your situation from the start?
we have remortgaed were only 18months into our iva and we got a rate of 6%. when iva set our propsal we had an agreement that they allowed for our increase in mortgage. Did you not have an agreement with them
Thank you all, I did not have an agreement with my IP about a reduction. However they were aware and simply said when I queried this that they would deal with this when it happened.
As I am sure you will understand, hindsight is wonderful and looking back there were probably many more questions I should have had clarified if I had known what to ask. I think most people in our situation were simply happy to get approved and be able to get on with lives.
I have written to them with a copy of the letter from my building society (Northern Rock) and I will let you know what sort of reply I get.
I agree with what you said though. I know I was ecstatic when ours were approved, was just glad to get rid of the creditor hassle and know that I was doing something positive towards our debt.
These things have a habit of showing up later when you least exect them, and have forgotten about them.
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 Nemo1 - do you mind me asking who you managed to get a rate of 6% through? Only asking since we will have to remortgage in just under 3 years so I am taking notes now of any good places to try when the time comes!!!
Thanks [:)]
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
