mortgages, pensions and insurance in an iva

[shelbert]

Our mortgage is with Northern Rock and at the same time as remortaging a few years ago we had a secured loan with the Co Op bank. I'm not sure if this is the Together package that I have seen mentioned in the forum before. We also have a large credit card bill with Northern Rock.

If we went ahead into an IVA would we still be able to keep our mortgage with NR or would they want us to move it? Also, they are one of the creditors that we owe the largest amount with, and I hear that they can be difficult. One of my concerns is that only my husbands name is on the mortgage, and he has life insurance. Would he be expected to cancel the policy? Also, we both pay into our works pensions, would we be expected to stop paying that? If one of us were to die in service then the amount paid to the other spouse would be enough to pay off the £50,000 we owe but not the house.Obviously it's highly unlikely that anything like this would happen, but surely it would be in the creditors bests interest to have some sort of protection if something happened?

Also, does anyone know of a company that lends 150% of a mortgage, because we only have £3,000 equity but if we could raise more with a 150% loan we could pay off our creditors but then this means sticking to a budget similar to what I worked out for an IVA for 20 years. Is this really wise? I want the creditors to get back as much of their money as possibile.I would really appreciate your advice with this.

[Aaron_]

Hi, I'm not sure of the answers to all your questions but my IVA was approved with me paying £40 a month in to my pension, £15 to my own life insurance, £11 for income protection and also paying some money to my partner for the use and running of her car (as I had an accident a couple of years ago and couldn't get another car) So as long as your IP builds all this in to your proposal that should be fine. The company I used were great and didn't want really any up front fees and weren't pushy. If you like you could email me ** and I can put you in touch with the person...for a chat and take it from there?

Re mortgages I thinks it's very unlikely that any lender would off 150%...there might be the odd one though that offers like 6 times salary, but you'll need some collateral...possibly not the best idea.

I'm happy to put you in touch with my IP...otherwise I'm sure one of the experts on here will help you.

**it is not advisable to post your email address as it will attract an excessive amount of spam. Unfortunately we have had to disable the email facility for the same reason. It is such a shame a few bad apples spoil things for everyone. I have forwarded your email address on to shelbert and deleted the reference to it here. I do hope that's OK?
regards, admin.

[neverending]

Hi
To answer your questions;
You would be able to keep your mortgage if you entered an IVA with Northern Rock,just as long as you keep up the mortgage payments.
1]You would be able to keep simple life insurance policies
2]the subject of company pensions are a little hit and miss with IVAs and it seems to be down to the IP that you go with.Ask them to exclude your pension contributions from the IVA,at the worst the creditors will want an amendment to your IVA to include these.
3]You would NOT be able to get a mortgage for 150% of your property value.
An IVA can return a fair amount to your creditors and will give you protection from further creditor action.
Speak to several of the companies that post on this site and they can outline the options available to you
Good Luck

[scaredkez]

the only thing i would like to add in regards to northern rock at my creditors meeting they asked that our life insurance be cancelled and the money be paid into the iva, they classed it as a luxury, even though it was a stipulation of their mortgage that we had it, so i just wanted to say it could be a possibilty that they ask you to cancel it
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Northern Rock's general policy is that they like to see at least half of the debt repaid through an IVA - and they will only support IVA's where it is clear that an ongoing repayment plan (ie a DMP) would not be feasible. Notwithstanding their dividend "wish-list" they do realise that not every person is capable of returning a 50p dividend, so will judge each case on its own merits. Northern Rock's credit card division do insist on a minimum 45p in the £ return from IVAs or they are likely to reject.

Northern Rock will be happy to keep your mortgage in house, and you must obviously maintain the payments on that account. I am amazed that Kerri was asked to cancel her life insurance, and I would fight hard to avoid that if I were acting as an IP and were faced with that modification.

And you should certainly not consider any further secured borrowings. Borrowing in excess of property values is a dangerous thing to do.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[scaredkez]

well as you know melanie with synergi anything was possible and they told me to accept that modification which i was reluctant to as hubby was diabetic, the response i got was well if anything happened to either one of you in the iva it wouldn't matter anyway in regards to the house, i was willing to accept anything at that time, but wasn;t happy about that, i just want to make people aware of what can happen unfortunatley i didn't have such a good IP as you who would have fought my cause, instead now going Br, but it is good to show all the advice that is given by many different IP's and what we have come up against on the day of the creditors meeting
hope you had a good holiday by the way
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[shelbert]

Thanks very much to you all. It's great to know that there are people to help and hopefully I'll be able to help people too.