Mortgages and IVAs

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leaKybrain

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Post by leaKybrain » Wed Sep 15, 2010 4:48 pm
Hi, this is my first question on here though I did join the forum last year some time. But I find I am in need of help and advise.[:(]

We have reached a point where a decision has to be made whether we consolidate credit cards and a loan with another larger loan, or we go the route of an IVA...but of course it raises other questions. The one in my head right now however concerns the mortgage.

In 6 months time our fixed rate mortgage is up for review and we will probably do another fixed rate as this is a better option for us...however, we had thought to increase the mortgage by £5k (equity) and get a newer car as our cars are on their last years.

Problem is though, if we do the IVA route now, will we be able to do this in 6 months. The cars we have now are both 12-13 years old and would definately not last the lifetime of an IVA.

Looking at the mortgage calcultor for our MP if we add that £5k on we would still be paying about £20 a month less than we are now.

So if we decide to go ahead with and IVA would we be able to get some of the equity in March from our mortgage lender.

I hope that makes sense [:)] It sounded ok in my head, but as my name implies I tend to lose bits [:D]
 
 

Michael Peoples

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Post by Michael Peoples » Wed Sep 15, 2010 4:54 pm
I doubt if the lender would advance the money at this time as they would be aware of the IVA. Your IP may not have an issue but this is irrelevant if you cannot get the finance.

It does make sense to try and get reasonable vehicles at this stage that will last for the duration of the IVA so it may be worth looking at a further advance from your mortgage company now, or obtaining car finance agreements. If you do opt for car finance, make sure the agreements are actually secured and do not just increase your unsecured borrowings.

Your chosen IP should be able to discuss all these issues with you.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

leaKybrain

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Post by leaKybrain » Wed Sep 15, 2010 8:06 pm
hi thanks for that, i didn't think we'd be able to, I think we'll have to have a word with the mortgage company and see what the penalties are likely to be for sorting early, it may just be worth it in the long run.

Thank you Helen, I'm sure i'll be a regular before long [:D] we're definately in need of sorting somethign out

xx
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