I entered into an IVA c.18 months ago and all going reasonably well.
I was recently asked by my IP to sign a caution that would apparentely be registered with the Land Regsistry. I was concerned this would affect my mortgage so started looking through Halifaxs standard mortgage Ts & Cs online.
These appear to state that I am in breach of my mortgage simply be entering into an IVA in the first place (and that, consequently, Halifax can ask for immediate repayment of the whole sum, ie, withdraw/enforce the mortgage).
You have nothing to be worried about. While Halifax will be notified they will remain outside the IVA as a secured creditor paid in full. This is not unusual in the T&Cs but in over 16 years I have only ever seen NatWest try to call in the debt in a handful of cases and subsequently back down.
Hi Henry. Halifax would have been notified of the IVA by your IP when it first happened so should already have it on record anyway. As long as you keep up the payments you should be fine. If you check your paperwork/proposals they should have been mentioned/listed as a secured creditor.
Very, very rarely are mortgages called in due to an IVA, as long as they are serviced according to your mortgage terms ( i.e you keep up the payments). The building society stands to lose out by foreclosing, so will not do it lightly. The clause is usually regarded as a device whereby they can easily foreclose if you start to mess up with them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I had similar concerns with my mortgage with Santander at the start of my IVA in Oct 2012 but have never had any problems and have recently gone onto a better fixed rate which has saved me £40+ a month. It's probably one of those clauses put in there to cover their backsides should anything go wrong.
I'm with bank of Ireland mortgages (formerly Bristol & West) I've never had a problem in 5.5 years and recently changed from the SVR to a 5-year fixed rate saving around £50 per month.
I also have my mortgage with the Halifax & am going into the 5th year of my IVA. I have been able to change my rate. I've received a letter from Halifax stating they where informed I'm in a IVA & to let them know when it has finished. Nothing about having to repay in full. Hope this helps.
After reading this I checked the T and Cs on my own mortgage agreement and though it isn't a breach to enter a va it says they may recall all money owed if entered --- crikey ? I wish I had known all this at the beginning although it isn't the responsibility of the va company to direct you to this issue I was reassured and reassured and reassured by them this would not affect my mortgage home etc boo
My lloyds tsb mortgage also stated they may request full settlement should I enter any arrangements with my creditors. I think its a pretty standard clause which is rarely acted upon.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
This was also in my Natwest mortgage terms. I was assured that they would not act on this as long as payments were maintained.
Natwest advised that our mortgage account would remain with the collections/ arrears team (although not in arrears) for the duration of the IVA, I also had a financial questionnaire to complete each 6 months but I haven't received this again since the first year.
I also changed the rate since with no problems.
