We have been in an IVA since March this year and have just received a letter from our mortgage company saying we have been overpaying our mortgage since Sept 2008 until now and they owe us nearly £7000. Can Payplan ask for some of this money?
It probably would but I wonder why the mortgage company haven't just taken this off your balance and just adjusted your payments from now.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm just really surprised that it wasn't taken off the capital anyway, I'd have thought most mortgage companies would have done that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Possibly not - would be good to have the choice though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The problem in an Iva is that presumably once you have the choice, it becomes an asset available to creditors and you can't then choose to repay capital.
My mortgage rate is done at the start of the year and doesn't change for the next 12 months, regardless. If the interest rate goes up then I lose out obviously as the capital won't change much.
If it goes down though then I do win and more is paid towards the capital.
I've never been given an option when that happens.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The worst part about an iva must be having a sniff of money and having to hand it over. It's a bitter pill however much one appreciates the second chance an iva offers.
If it was interest only that might make a difference.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes thats right Jan - if its interest only it can only reduce the amount outstanding. I think this is a little tricky because if ssheppy is currently in negative equity, for example, a lump sum of £7,000 could place her/him in the position whereby they would need to release equity or extend by 12 months. Also I reckon that as the mortgage company are saying that this is an overpayment, then this would have increased the monthly surplus payable to the IVA had it not been overpaid therefore making the £7,000 due to the IVA pot. I'm certainly not an expert on this but its just a thought x
