Interest Rates gone up

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mole

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Post by mole » Tue Aug 07, 2018 5:28 pm
Friend is in an IVA, and just had a letter that says her Mortgage payments are going up following last weeks interest rate rise. They went up a few months ago and the provider allowed a 10% deduction in payments. I don't think they will allow this again.

I am sure there must be 1000s affected by this rate rise.

Thanks, Mole

Foggy

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Post by Foggy » Tue Aug 07, 2018 5:33 pm
The provider can usually allow up to 15% reduction (based on the 1st years payment amount) without consulting creditors. Anything over this can be agreed by creditors, if they decide to accept.
Things like this generally only become insurmountable if the I&E was calculated too tight at the outset.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

mole

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Post by mole » Tue Aug 07, 2018 5:39 pm
Thank you I will let her know. Perhaps not an issue at present but could be if rates continue to rise (who knows if they will !)

luluj

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Post by luluj » Wed Aug 08, 2018 5:42 am
Best to keep the IP informed so they are poised to instigate a full review should it become a real issue ....
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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