a question about mortgage if anyone can help please

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aquamarina

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Post by aquamarina » Tue Aug 10, 2010 1:37 pm
I'm considering an IVA at the moment and I have a question about my mortgage payments if anyone can help please.

My fixed deal runs out next year which means I might be paying much less per month when it reverts to the current low base rate. What happens to the difference, do I pay it all to my IVA fund?

Also, would anyone recommend re-entering a fixed deal straight away when it runs out or leave it at the standard rate? I'm concerned that it might not look very favourable with my creditors if I am in an IVA and I do something that means I am paying more to my mortgage by re-entering a new deal instead of staying at the current low rates.

Thanks in advance.
 
 

Michael Peoples

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Post by Michael Peoples » Tue Aug 10, 2010 1:42 pm
Hi Aquamarina and welcome to the Forum.
If your mortgage reverts to a deal less than you are currently paying your IVA payments would increase. They would of course also reduce when rates start to rise again as it is not a one way street.

I have no idea how rates will go over the next few years so would not want to advise anything based on interest rate changes. However, if you found a good five year deal when your current deal expires this could be a good option because it would give you stability for the duration of the IVA. Your IP should have no problem with this as they could not force you onto the standard variable rate if your bank is able to help with a longer term deal.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Shining

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Post by Shining » Tue Aug 10, 2010 1:50 pm
Hi and welcome to the forum, my fixed term ended last year and my payments reduced, I therefore now pay more into my IVA as a result. I take reassurance from Michael's post about the y would reduce if and when the interest rates start to rise again as I'm sure it will.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Nicola.sa

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Post by Nicola.sa » Tue Aug 10, 2010 3:54 pm
My mortgage company will not let us switch to another deal as they say we are in negative equity. I am not in an IVA at present and credit rating is ok. It seems strange as most people I talk to are able to secure another deal. We are not trying to borrow anymore money, just go onto another deal which we have always been able to do in the past. I don't understand it. We were with Alliance and Leceister which has recently been taken over by Santander.
 
 

c.j

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Post by c.j » Tue Aug 10, 2010 5:20 pm
I know my building society,the chelsea wont remortgage for less than 80% ltv
Iva finished !
 
 

Andrew Graveson

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Post by Andrew Graveson » Tue Aug 10, 2010 5:46 pm
Lenders take different views on whether to offer replacement "deals" to their existing clients. These views also change over time.

The normal advice is to check with your mortgage lender three months before the existing "deal" expires.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
 
 

aquamarina

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Post by aquamarina » Wed Aug 11, 2010 4:32 pm
thanks everyone, good to know.

so if my mtge payments are now 550 and they reduce to 350 in a few months, will i pay the whole 200 difference into my IVA fund? i'm a bit confused how it will work because that would technically free up enough to repay the full payments to my creditors; would the IVA then be cancelled?


(btw i got an error message when i originally posted so tried again today with a similar question, thinking this one hadn't gone through so please ignore the next one. what a newbie!)
 
 

Michael Peoples

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Post by Michael Peoples » Thu Aug 12, 2010 10:17 am
Your IVA will not be cancelled because of higher payments. The return to creditors will improve while the higher payments are being made but will then be adjusted when rates rise again.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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