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.
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.
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.
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.
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!)