Hey everybody, just writing different questions regarding our hopefully future IVA.(nearly there).
I was just wondering, next june our mortgage will come off our 5 year fixed period and it will go to a base tracker.
This could poss reduce our mortgage payments by around £200-£300 per month, depending on how the intrest rates go.
Our question is, if our payments do go down by any amount does the whole amount go into the IVA or does the keep 10% then split the rest by 50% apply ?.
It does say in our proposal that the mortgage will change next year but thats it.
many thanks.
Last edited by baldy on Mon Sep 27, 2010 7:48 pm, edited 1 time in total.
Hi
The whole amount of any saving will be added to your IVA payments. It may be prudent to try and obtain another fixed rate over say four years.
Regards
Now that was not what was put across to me when sorting out our IVA!!!!
We were told 10% than 50-50.
Im going to have to make sure what the position is on this.
Do you think its sensible to actually speak to the IP and not their assistants? IE: from the Horses mouth?
No offence to their assistants!!.
The 10% and 50/50 normally refers to overtime and bonuses, not savings you can make on your normal finances.
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
Thanks Andy and Kallis, just wanted to make double sure! I would have felt the proposal would have made more of a point of this as i would have thought this would be a good selling point (ie more money for our creditors)for our proposal.
I've always been on SVR - dreading when the interest rate goes up again.
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
It does not sound like the proposal or the process has been explained very well at all. While it is great that you can and do post questions on this forum, it is wrong that you should have to. Your IP should be giving you all this information and you certainly should not be signing a proposal that you do not understand.
You need to speak directly to your IP and have all your concerns addressed. If you feel that you have been misled or there is confusion the only way to clear this up is by speaking directly to the IP and getting any queries answered in writing.
There is a need for some correction here to the earlier posts perhaps. Under the IVA protocol, if the disposable income increases - ie the surplus left after taking your income and then deducting expenditure - then your payments would only need to increase by 50%. So if the only item which changed were your mortgage payment, then you would only need to increase payments by 50% of the saving.
Don't be afraid to call me in the office if you want to ask me anything directly. I'm in all day tomorrow trying to hide away from the hideous Ryder Cup that seems to have overtaken my land. Hate golf!
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
