remortgage fears

[jellybean]

I am hoping to get my iva approved over the next few weeks but in the interim I am remortgaging as I came to the end of my fixed rate with NR. I have not told my new lender anything about the IVA because I am not in one yet and it may not even be approved. But I have just been reading the terms and conditions and it has made me sick with fear. It says that the full amount will be payable if I enter into a voluntary arrangement with creditors. I then looked at my NR terms and it says the same. What does this mean? If I get this mortgage will they then take it away and demand full payment if I get my iva accepted? Have been fairly calm up until now but this is a real worry . Thanks for this great forum. It really helps.

[Soulgrowth]

Hi jellybean ... just wanted to say welcoem to the Forum ... one of the experts will be around soon to give you some advice [:)]

Debbie

[MelanieGiles]

This is a standard mortgage terms which is rarely enforced, but you would be wise to discuss it with the broker who is arranging your mortgage for you - who I imagine is aware that you will shortly be entering into an IVA?

[jellybean]

I told my broker that this was likely to happen but he did not seem that bothered as my credit checks were all ok with the mortgage company.

[Reviva UK]

Hi and Welcome

Just a word of caution, quite OK to remortgage to get a better rate but if you extend the mortgage - i.e. increase the loan and have cash you should probably tell your IP.

The other thing that is really important is to make sure that the mortgage won't impact upon the IVA in the coming years.

i.e.

If you take a fixed term out for 3 years, then in 3 years time ( when you are in the IVA) your interest rate jumps meaning your payments will also increase significantly. You will find details of this in your "Key Facts" info from the broker . What you definately don't want is for the increase in mortgage payment to eliminate your ability to continue with IVA payments because you don't now have any disposable income.

You would also have some challenges remortgaging while in the IVA because you will need a "letter of satisfaction " from the IP, PLUS now you are in an IVA your interest rate will significanlty increase.

Tread carefully and get good advice from your broker and IP.

Good luck

[jellybean]

Thanks for that reply. I have taken a 5 yr fixed rate which would tie in nicely with the iva so the payments will be the same. Then in my 5th year I can try and remortgage.

[Reviva UK]

Well done!

With a fixed mortgage and a fixed ( ish ) IVA you shold be set to overcome the problem.