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RHB
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by RHB » Sat Jan 16, 2010 6:12 pm
I totally agree it is not a nice choice BUT would you rather be stressed up to the eyeballs about debt & working too many hours & risking your relationship???

 

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Skippy
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by Skippy » Sat Jan 16, 2010 6:12 pm
My relationship would have been at risk if we had stayed where we were.

 

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RHB
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by RHB » Sat Jan 16, 2010 6:20 pm
All has to be weighed up Skip, BUT I know of quite a few people who were forced to lose their himes who feel happier in rented. All I'm saying is, bricks & mortar don't make a home.

 

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Skippy
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by Skippy » Sat Jan 16, 2010 6:24 pm
I totally agree, it's each to their own. It wouldn't suit me as it would actually be more expensive to rent in this area than it is to pay our mortgage, and I couldn't face going back to live in a large block of flats on a main road with a lot of horrible neighbours!

The ironic thing is when we were in the flat we thought about selling and renting as we were so desperate to get out!

 

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kallis3
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by kallis3 » Sat Jan 16, 2010 6:33 pm
I'm sorry, but my bricks and mortar do make a home, and I know that we would be unhappy if we had to move. This is one of the reasons we went for an IVA rather than BR as we have equity in the house.

We've lived here for 21 years now, the neighbours and the neighbourhood is wonderful. They will have to drag me out of here kicking and screaming.

 

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MelanieGiles
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by MelanieGiles » Sat Jan 16, 2010 7:06 pm
I guess the difference with you guys - Jan and Skippy - is that you have your debts under control. Our unfortunate poster does not, and that is why he/she may need to prioritise some important decisions moving forward.

 

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kallis3
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by kallis3 » Sat Jan 16, 2010 7:09 pm
I agree to a certain extent, but even when we were struggling, losing my home was not an option.

 

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Skippy
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by Skippy » Sat Jan 16, 2010 7:21 pm
I can see where the poster is coming from though Mel, and if I was back in the situation where I didn't have my debts under control I would still fight tooth and nail to keep my home.

If we were in that situation, we would have to leave the area which wouldn't be an option for me at the moment.

Doomandgloom, you really need to speak to an IP about your situation so you can discuss all your options. Have a look at the experts section at the side of the page and contact a couple of the experts who post on here.

There will be a solution for you, but you do need to take professional advice, and the longer you put this off, the more you will be worrying.

Good luck, and please keep posting xxx

 

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D&G
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by D&G » Sun Jan 17, 2010 12:02 pm
What i meant by getting back onto a repayment mortgage. If all spare money is going into iva, how do you ever afford to get back onto repayment. At the end of five years iva i would be 13 years left to pay on mortgage. But five years of no capital payment there is no way we would be left with 13 years to pay.

 

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MelanieGiles
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by MelanieGiles » Sun Jan 17, 2010 12:42 pm
If keeping the property is number one priority, then perhaps the only option is a never-ending DMP which is likely to affect the property anyway when creditors start slapping charging orders on it as is happening more and more these days.

There are many people who feel secure in their homes right now, but have high interest only mortgages with no equity. For people with only a limited timescale before retirement, I do wonder how they ever are going to repay those mortgages and therefore actually own the property.

I have seen far too many people struggle with financial difficulties due to hang on to a property with negative or little equity, without any thought for how the secured loans will eventually be repaid. I fear that in the next 10 years or so we are going to see far more homes repossessed from people who are now burying their heads in the sand under the illusion of property ownership.

 

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millsy22
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by millsy22 » Sun Jan 17, 2010 12:48 pm
hi we had to go interest only on our mortgage to raise money to help pay our iva and we will have only 13yrs left on our mortgage what i'm hoping is that we can add the shortfall onto the mortgage once we are debt free if not will have to try and sort it another way but didnt want the worry of losing the house plus trying to arrange an iva just too much stress

 

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MelanieGiles
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by MelanieGiles » Sun Jan 17, 2010 12:59 pm
What you need to do when the IVA is finished, is try and use all of your spare money then to chip away at the capital element of the mortgage. It can be quite suprising what paying even a hundred pounds extra per month can actually achieve in bringing down the mortgage term.

 

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RHB
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by RHB » Sun Jan 17, 2010 1:12 pm
That's it, use some of what you were paying on an IVA to go repayment. We were on interest free endowment mortgage but when we realised what was happening to endowments we changed to repayment over 15 years (what was left of the mortgage TERM)

 

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Skippy
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by Skippy » Sun Jan 17, 2010 1:16 pm
We're on an interest only mortgage. We originally took it out so we could move and were going to change to repayment at the end of last year, but as my job was shaky and I'm not on full pay we decided to stay interest only.

When things settle we'll change to repayment and hopefully start paying off some of the capital.

 

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MelanieGiles
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by MelanieGiles » Sun Jan 17, 2010 3:10 pm
Can you do this voluntarily under the terms of the mortgage now Skippy? Some mortgages do allow for you to repay up to 10% of the outstanding balance each year under this terms.
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