main concern is our fixed rate mortgage finishing

[ac8]

Hi,

My partner and i are considering entering an IVA as we have £21k of debt and seem to be falling further and further behind each month. Our credit rating is already damaged beyond repair so it seem this is the best option. My main concern is what will happen next Summer (July 2009) when the fixed rate on our mortgage comes to an end. will it be impossible to find a new lender or just as difficult as it would be with poor creit any way?

[Adam Davies]

Hi
There are lenders that lend to people in an IVA and the rates are still competitive.What is important is that you factor into your IVA for a reduction in your payments into your IVA because of possible increased mortgage payments next summer.
Regards

[Hull_Tiger]

I have just renewed my mortgage having been in an IVA since May. The easiest way to do it is stay with the same provider. My payment has risen slightly but that is mainly due to all the interest rate rises since the original deal was taken out.

[coupleplus1]

Our fixed rate is due to finish next month and Northern Rock, our providers aren't able to help. I was told by one of the mortgage brokers that as we are in an IVA we wouldn't get a rate below 6% and just to hang on to see what happens with the interest rates as hopefully they will becoming down (like today) and then we wouldn't have to pay a new start up fee etc

[Andrew Graveson]

Hello coupleplus1,

I think it's good advice to approach your own lender if possible rather than paying the extra costs that can be associated with going elsewhere.

Don't leave it too late though. If you cannot get what you need with your own lender and leave it late to go elsewhere you could be stuck on a high rate in the interim.

The normal advice is to start reviewing mortgage arrangements three months before an existing mortgage deal comes to an end.

[mikebdomain]

The best advice is to always approach your own lender first. If you are currently on a repayment mortgage, you may be able to switch to interest only from July 2009 for the remaining period of your IVA, to help keep the costs down. Then look to do a remortgage when the equity release clause of the IVA kicks in.

If your own lender is unwilling to help at the time, a remortgage by a mortgage broker is possible in most cases, but the rate you could obtain would be affected by the IVA. As long as you keep up your mortgage and other secured payments and show a good payment profile, the rate shouldn't be pushed up too much.

[sps]

Hi
Our mortgage is with a well known high street lender and our fixed rate ends in October. Will the fact that we had a f+f IVA last year approved in April and completed in August affect any future rates we are offered if we stay with the same mortgage company. Do we have to disclose that we had an IVA - will this be a standard question asked when we review our rates.
Sue

[Welsh Boy]

sps

Your rate will reflect the fact that IVA is on your credit file, but don`t be too down hearted there are some decent rates around even if the lenders may not be high street lenders.Try your current lender and test the water with them, you have a "duty of disclosure" of information to any prospective lender, and IVA whether present or past is a standard question on every application form I have seen.Hope this helps.Tony

[sps]

Thanks for your reply Tony. Will start checking out what rates we can get a couple of months before our fixed rate ends.
Sue

[coupleplus1]

Hi Andrew

It was with our normal mortgage lender that we tried to originally stay with, and after they took an age to reply we tried looking else where. We will continue looking to see if we can get a good fixed rate so not given up hope yet!

[Andrew Graveson]

Hello,

Best of luck with your search.

[coupleplus1]

Andrew

I may give you a ring on Monday to see if you can sort something out for us. I have tried another broker from here but he wasn't able to help us, hence the first response to this original message

[Andrew Graveson]

I'd be very pleased to do all that I can to help.