Fixed rate mortgage and IVA proposals

[flowerpot]

I would be interested to know...
if you are in a fixed rate mortgage deal when you propose an IVA, and have spoken to the mortgage company with regards to re-fixing the rate when you near the end of the current package and all looks positive ...
Would this be grounds for the creditors to say no?

My husband and I are really scared that if we propose an IVA, in the event that it was declined, and even though we could afford to make reduced payments or possible full payments short term, that legal action would be taken by the creditors (or some of them at least).

[Adam Davies]

Hi
Creditors can take legal action at anytime outside of an IVA.
Make sure that your IP is aware of the fixed rate coming to an end at some point as mortgage companies change the goal posts frequently,depending on market conditions.A favourable response now is no guarantee of acceptance
Regards

[MelanieGiles]

Andy is correct to point out that in today's mortgage marketplace there is very little certainty as to what might be available in the future. There has to be good grounds for remortgaging at the outset of the IVA on a five year fixed rate timed to expire at the time of equity release - so that at least there is certainty that the repayments will not increase in line with interest rates.

[Andrew Graveson]

A great idea to have a 5 year fixed rate mortgage for someone in an IVA.

Unfortunately there is not a single such product available currently as far as I am aware.

This seems a bit odd as so many people enter into IVA's (rather than bankruptcy) to protect their family homes and are therefore highly motivated to maintain continued on-time repayments of their mortgage.

[Adam Davies]

Hi
Would be sensible for a mortgage provider to produce a fixed rate 60 month mortgage with a guaranteed 85% ltv release at the 54 month stage.Would fit in nicely with the new potocol
Regards