can mortgage companies request full repayment

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james.11
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by james.11 » Tue Jan 26, 2010 9:12 am
can mortgage companies request full repayment of their loan when I enter an IVA, it says in the terms and conditions that they MAY, how likely is this ? I thought this protected the family home.

 

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Michael Peoples
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by Michael Peoples » Tue Jan 26, 2010 9:22 am
Hi James and welcome to the Forum.
Occasionally clients receive letters from a very small number of banks demanding total repayment. However, provided you continue to pay the mortgage there is nothing they can or will do. The vast majority of banks are not concerned about IVAs because the income and expenditure account provides for payments to continue so they are protected. There is nothing to be concerned about if you enter an IVA.

 

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kallis3
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by kallis3 » Tue Jan 26, 2010 4:42 pm
Totally agree. My mortgage company actually thought we had gone bankrupt! We hadn't, have continued making the payments and had no problems at all.

 

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MelanieGiles
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by MelanieGiles » Tue Jan 26, 2010 9:49 pm
I find that quite a few lenders actually have this in their small print, probably without realising the consequences of their decisions or without any intent to call in their loans if their customers enter into insolvency proceedings.

Don't worry about it, they will be notified of your intent to enter into the IVA and in 25 years I have never seen this happen.
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