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Hi

I have been considering an IVA but thought I would be better to wait until the end of my mortgage tie in so that I could remortgage (I am tied into a high SVR) I dont have much equity in my property (about £7K Value £135 owe £128) but it would be better if I could reduce those payments so that more money would be available to pay into my IVA. However, the end of the tie in is May and I'm not sure we can hold out that long, we are just starting to miss payments. Would we be able to remortgage during an IVA to reduce our payments to make more funds available? Would any Mortgage lenders allow us to do this while in an IVA?

Thanks

Hi Dee

Given your low equity I do not feel that a re-mortgage during an IVA would be a viable option, however I am sure one of the mortgage experts will be on-line shortly to assist.

Has your current lender given you any indication of what your new mortgage payments would be post-May? If so, there is no harm in starting the IVA process now but not finalising until your new payments are more certain.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi Dee,

I'm not aware of a lender who will currently lend such a high loan-to-value to someone in an IVA.

You say you are paying a high rate at the moment; it is likely that you would pay a premium on a "normal" mortgage rate if you are in an IVA so it's possible you might not get the saving you hope for.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

I have to agree with Andrew on this, especialy if you have missed any of your mortgage payments

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I haven't missed any mortgage payments in the last 12 months and have only ever missed 1 payment in the last 2 years which was paid in full the following month. My payments wont change post May but there would be no penalty to move the mortgage to another lender at a better rate of interest if there was one available. So my question is would I be better to wait until May to try and negotiate a better mortgage deal then look at the IVA option? I understand that either way I wont benefit but I would be in a position to pay more back to the creditors.

Thanks
Dee

If you can afford to make IVA payments now, i certainly would not wait until May before proceeding. After all, reduced payments in May will only benefit your creditors as any saving will have to be passed on to them by way of a higher disposable income.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp