i live with my partner we have a house worth around 115K we owe 145 this is not a problem for us as we can afford the morgage, we got into debt(singly) we have no joint debt and i owed around 10k i entered an iva and things are going well for me financially, my partner owes around 11k and hes considering an iva to how will this affect our morgage when the fixed rate is up in 3 years? also where is the best place to get an iva i choose a company recommended by a friend will it affect us alot and how much per month is he likely to pay i pay £180 over a 5 year period?? we are really unsure what to do he owes the money in a overdraft, credit card X 3 and a tool accont??? will this affect our morgage?? PLZ any advice
Those are very low debts to be doing an IVA on - I am rather suprised yours was accepted when you only owe £10k, and I think it will be difficult for your partner to now get an IVA is he only owes £11k.
Also if you are facing an increase in your mortgage payments in 3 years time, at the level of borrowing you have this will quite possibly absorb all of yur disposable income at that time - so it may be difficult for you to maintain any sort of ongoing repayment plan if you intend remaining in the property.
Who is your current mortgage with, and do you know the interest rate you are currently repaying?
thank you for your reply i have checked what i have and it is a debt management plan? what is this and do my creditors have to honor this for the term it takes to pay it off?? my morgage is with northen rock and the % is 5.79 we have 96,307 in a morgage 2 secured loans 8,600@ 6.89% and 21,500@ 6.89% and 11,000@5.79% is this bad????? I feel a bit daft not knowing what im doing especially as i have entered a debt plan and dont know nothing about it?????? what do you sugesst????
I am afraid to say that when that mortgage is due for renewal (based on today's conditions) your interest rate will be up to the variable rate which is currently 7.49% I think. You can expect your repayments to go up considerably from that which you are currently paying.
A Debt Management Plan is effectively a gentlemana agreement between debtor and creditors to accept reduced payments over a longer time period. There is nothing wrong with these types of plan, and for people with relatively low amounts of debt they can be an ideal way of getting your debt eventually repaid.
I suggest that you have a chat with your DMP company to see what they can suggest for you - but it is wise to look forward at this stage in view of the mortgage increase you expect.
