Hi all. After some advice please. If interest rates are increased and the impact on my mortgage payments is high, what would happen. i.e. reduction in payment or would selling be an option? If we did this Im guessing any equity would go straight into IVA. Would they leave us some to be able to secure a rental? SOrry, so many questions but just wanted to know where we would stand.
Hopefully rates will not increase for some time but when they do it will affect numerous IVAs. Payments will have to be reduced where necessary and having had soundings from creditors they have indicated that variation meetings may not be needed and the IPs can use their discretion.
If rates went up dramatically and you could no longer afford the IVA or the mortgage, your IP would allow the sale and you would be able to keep sufficient funds for relocation, rent in advance, deposit etc.
thank you for your reply. I am with NRAM at the moment and it recent statement pack they included a leaflet on being prepared for the bank of England to raise the rates! I really wouldn't want to sell as getting back on the ladder later on would prove difficult.
They have not gone up in years and every time it is mentioned it seems to be put back again. Hopefully your IVA will be long over before they do go up and you can remortgage to a new lender once your credit file has cleared up [if it is cheaper and worth your while].
Thanks so much for that, calmed me down a treat. Im a bit of a worrier! Its my first review this month and getting paperwork together, something else to think about
