Hi, I have just been informed by my mortgage company that my current interest rate is changing and my monthly mortgage payment is going to be £255 a month less.With christmas not far away this extra money would be a godsend! My question is do I tell my IP now or wait until my annual review?
You should inform your IP now, they may state that you do not have to make any changes to your IVA payment until your annual review but best to let them know now so that you do not have any nasty surprises come your review
That's a nice surprise but to be on the safe side inform your IP. It should only be taken into account at your next annual review - leaving you better off now but it depends on the terms of your IVA so you need to clarify with your IP.
Let us know what they say and fingers crossed you can benefit from the change in the meantime!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Most mortgages allow you to pay rate over term with the up and downs of interest rate as your has gone down would it not be in the ineterest of the creditors whilst interest rates are low for you to continue your current payments. This way as interests rates go up, as they will, you have overpaid, the impact will beless, as you will have paid more of the capital as it is now. It only works for this circumstance of 0.5% base rate ie they won't get any lower. Makes sense to my odd way of thinking..
