Combining the mortgages would probably reduce your mortgage payments, as the interest rates on mortgages may be lower than the secured loan, but if you are going to be entering into an IVA, you will not benefit from this saving but your creditors will.
As a property owner, creditors will expect to see you effecting a remorgage during the final year of the IVA in any case to raise equity at that time, based upon lending of 85% loan to value, so by continuing to pay a secured loan on a repayment basis, you would be merely increasing the potential equity available to creditors at that time and thus increasing the amount to be borrowed at the end of the IVA.
This could be equated to swings and roundabouts, but if worth considering if you think an IVA is the appropriate way forward.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
