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Darkdog
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by Darkdog » Mon Jan 18, 2010 10:47 am
We have had a repayment mortgage ever since the endowment shortfalls we highlighted years ago, although we have changed mortgage provider a few times we always stayed on repayment. I thought if you had interest only you had to make some provision for end of term repayment like an endowment or a linked pension or something which made the total monthly repayments not much different. Do mortgage lenders allow just interest only with no method of repayment?

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 11:00 am
I think is what used to happen.

However, my step daughter is on interest only and she has no such provisions.

 

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Darkdog
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by Darkdog » Mon Jan 18, 2010 11:10 am
I think that is quite scary !! like having a 25 year rental agreement and never own the property and have to do all the maintenance yourself

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 11:39 am
Very scary! I presume that once the mortgage is finished, and she can't pay back the capital, they will repossess.

 

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Shining
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by Shining » Mon Jan 18, 2010 11:45 am
I have nothing in place at present either, not good, hoping to rectify a lot of things post IVA.

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 12:11 pm
You and me both Lesley! I'm just glad that we changed to a repayment when we did, even though it doubled our payments overnight.

 

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D&G
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by D&G » Mon Jan 18, 2010 12:33 pm
Partner does fifty hours a week, that is guranteed at present. But there is a strong possibilty that he may go on four day a week this year. In working out salary, do you base it on what he would get on a forty hour a week, and the rest is overtime or on weekly pay of a fifty hour a week? cause his basic week may change to 40, 44 or 48 hour week. We just do not know at present.

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 12:37 pm
You need to tell your IP the full facts, including the fact that his wages may go down in the future.

They should be able to advise you as the best way to go.

 

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Darkdog
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by Darkdog » Mon Jan 18, 2010 12:38 pm
I would suggest you base it on the contracted hrs and anything above that is over time which cannot be guaranteed

 

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D&G
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by D&G » Mon Jan 18, 2010 1:03 pm
They guarantee fifty hours but if he only wanted to do fourty he could. So yes ten hours a week are overtime that he is contracted too but if it was too much he could just do fourty. But because he does fifty is that what you would base his earnings on.

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 1:20 pm
Personally I would go with the initial 40 hours, which is what he may end up with anyway.

Anything else can be treated as overtime, whereby you can keep a proportion of this and if he does go down to 40 hours you should be covered.

 

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MelanieGiles
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by MelanieGiles » Mon Jan 18, 2010 8:24 pm
Always err on the pessimistic when calculating your salary - ie go to the worse case position. You can always pay more if you earn more, but you should avoid struggling to make your payments in future by being overoptimistic.

 

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D&G
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by D&G » Mon Jan 18, 2010 10:13 pm
It has been so long since he did a forty hour week, i would not know how much his take home pay would be. It may also look like an iva is not viable if income came down to this much. Also at the moment he is contracted to fifty hours a week. Would it look deceptive. I think even if there is a change of hours he would still be guaranteed fourty four hours.

 

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MelanieGiles
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by MelanieGiles » Mon Jan 18, 2010 10:37 pm
If that is a reasonable figure to assume, then work to that. Your IP ought to be able to help you work out the calculations, and then advise you as to what solutions will suit your circumstances. Don't make the mistake of trying to make an IVA fit if your disposable income is tight - in reality this gives it more chance of failing at some stage along the way.

 

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kallis3
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by kallis3 » Tue Jan 19, 2010 8:32 am
I agree with Mel - you should be able to live whilst in an IVA and not struggle.

Have a chat with a couple of IP's and see what they suggest.
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