I currently earn £37k (£2100 take home after pension and student loan). I am changing jobs and reducing my salary to £28k (approx £1500 take home after pension and student loan).
My husband earns £40k (approx £2300 after pension and car tax)
We have a joint mortgage and our joint expenses are £2k a month, with approx 18% equity in our property.
I am considering an IVA as I have been paying my debt at approx £700 a month, but am going to struggle when i reduce my salary.
My questions are about how this would affect my mortgage, as I understand that equity sometimes has to be released. I am also concerned as I dont want this to impact on my husband - will it affect his credit rating?
An IVA mortgage is a mortgage designed for people who have entered into Individual Voluntary Arrangements to manage their debts. An IVA consists of reaching a payment arrangement with creditors. An IVA allows the debtor to pay a set sum towards repayments every month for up to five years. At the end of that time the debt is wiped out. Therefore it affects your mortgage.
*Sorry, no advertising allowed on the forum*
Last edited by Datarecovery on Wed Jul 28, 2010 12:53 pm, edited 1 time in total.
My mortgage has not been affected. The company are aware of the IVA and as long as we continue our payments there is not a problem.
I do have to try and remortgage in month 54, but if I can't then I just carry on for a further twelve months.
k.i.h will probably have to try and remortgage from her half of the equity.
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
If you are suitable for an IVA - your husband will need to agree to you exploring a remortgage at the end of the IVA, providing you have equity based on a maximum 85% loan to value ratio. If this is right solution for you as a family, then I am sure he will be happy to help you.
Please be careful as it has been noted that some lenders(santander for one) at the end of any fixed rate mortgage will no longer put you onto a SVR but may instead put you onto a different rate for poor credit customers(regardless of whether your mortgage is up to date or not). This clearly has a cost impact,and switching mortgage providers is highly unlikely at this time.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.