Can I take mortgage payment holidays when I have an IVA ?

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wayne452
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by wayne452 » Sat Dec 02, 2017 9:48 am
I have an IVA application in progress. I understand I am not allowed to obtain credit if this is approved. My question is this: I am led to believe my house is protected under an IVA. I have a flexible Mortgage which allows me to take payment holidays. If I take a payment holiday when the IVA is in progress, is that classed as obtaining credit and as such need declaring to my practitioner?
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Foggy
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by Foggy » Sat Dec 02, 2017 10:08 am
wayne452 wrote:
I have an IVA application in progress. I understand I am not allowed to obtain credit if this is approved. My question is this: I am led to believe my house is protected under an IVA. I have a flexible Mortgage which allows me to take payment holidays. If I take a payment holiday when the IVA is in progress, is that classed as obtaining credit and as such need declaring to my practitioner?



It would not be classed as obtaining credit, but, unless agreed in advance with your IP, on the months that you take as a holiday period your expenses will drop by the mortgage payment and your disposable income will increase. There are other possible ramifications in that, over the term of the IVA, by commuting these payments, you would be reducing the equity in the property and, potentially, depriving creditors of the proceeds when you sell or if the equity release clause kicks in.
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kallis3
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by kallis3 » Sat Dec 02, 2017 10:23 am
I wasn't allowed to when I did mine,
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