TRACKER MORTGAGE

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Goosed
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by Goosed » Wed Jan 27, 2010 12:17 pm
Hello there forumistas...I`m currently on a tracker mortgage which has obviously reduced significantly in recent times, due to tumbling interest rates. I was wondering how I would calculate my mortgage payment for my outgoings in my budget in an IVA application, as once the tracker finished my mortgage payment would increase dramatically, and therefore my outgoings during any potential IVA...Does anybody have any idea???

 

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Michael Peoples
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by Michael Peoples » Wed Jan 27, 2010 12:24 pm
If your tracker is currently discounted you can factor in the increase once the discount is finished. However, it is impossible to guess how interest rates will go over five years and any increases will lead to reductions in your IVA payments if your income does not increase sufficently to absorb the rises.

List what you pay now and when it will increase and to what amount.

 

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Goosed
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by Goosed » Wed Jan 27, 2010 12:34 pm
Michael Peoples wrote:


If your tracker is currently discounted you can factor in the increase once the discount is finished. However, it is impossible to guess how interest rates will go over five years and any increases will lead to reductions in your IVA payments if your income does not increase sufficently to absorb the rises.

List what you pay now and when it will increase and to what amount.
Thank You Michael.

 

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hunnybunny
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by hunnybunny » Thu Jan 28, 2010 2:46 pm
Hi there

Sorry to hi-jack your thread Goosed, I am also on a tracker mortgage and was wondering what happens with these in an IVA - mine dropped 200 from one year to the next but I am fully aware that it is likely to rise in future. Can something be built into the initial IVA proposal that recognises that the mortgage payment will change on an annual basis and that the creditors will agree to this, whether it goes up or down or will it require a variation each time it goes up?

In addition, I have an overdraft with the mortgage this is basically what has been paid off the mortgage so far. It is about 15k, of which I have used 10k. I have the duration of the mortgage to pay it back and am charged interest on a monthly basis. As it is secured borrowing but doesnt have a set monthly repayment, how will it be treated in an IVA? ie - how much will be I be allowed / expected to pay off it each month?

Thanks

 

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Goosed
Posts: 953
by Goosed » Thu Jan 28, 2010 6:02 pm
hunnybunny wrote:


Hi there

Sorry to hi-jack your thread Goosed, I am also on a tracker mortgage and was wondering what happens with these in an IVA - mine dropped 200 from one year to the next but I am fully aware that it is likely to rise in future. Can something be built into the initial IVA proposal that recognises that the mortgage payment will change on an annual basis and that the creditors will agree to this, whether it goes up or down or will it require a variation each time it goes up?

In addition, I have an overdraft with the mortgage this is basically what has been paid off the mortgage so far. It is about 15k, of which I have used 10k. I have the duration of the mortgage to pay it back and am charged interest on a monthly basis. As it is secured borrowing but doesnt have a set monthly repayment, how will it be treated in an IVA? ie - how much will be I be allowed / expected to pay off it each month?

Thanks


That`s exaxtly what I was concerned about, as my mortgage payments would increase drastically DURING any potential IVA...I was wondering whether I would list my mortgage payment as what it would be when the tracker finished, or what it is now. As Michael suggested,I will list both when the time comes

 

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MelanieGiles
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by MelanieGiles » Fri Jan 29, 2010 2:40 am
We always try and factor in changes to mortgage payments - either up or down - via stepped payments within the IVA. Sometimes this is not necessary, but best to try and work it out - especially if you know that you will be coming off a fixed or tracker rate during the term of the IVA.

 

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Shining
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by Shining » Fri Jan 29, 2010 6:07 am
My fixed rate came to an end in January and my mortgage payments dropped accordingly, I'm with Melanie so it was factored in, I've paid 24 months at * amount and now 36 months at the new rate.
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