Interest Rates gone up

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mole
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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
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Foggy
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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.
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mole
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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 !)
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luluj
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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 ....
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