Hi
I could do with some advice please. Sorry i haven't posted in a long time (hardly get chance these with a very active toddler and newly mobile baby)
Our IVA was approved in June, we have a charging order on our home (NR loan that was part of the Together mortgage).
Anyway we received a statement from NR today and £250 interest is added to our loan each month, we just make a contribution of £75 p.m to the charging order, but even if we'd paid the amount they'd wanted each month it still wouldn't cover the interest. This has concerned me and hubby somewhat as by the time the IVA ends (in 6 - 7 years) it will have increased by approx £13,000 and poss more (at the moment the loan is just under £20,000.) It just seems like a heck of a lot to be paying in interest, It's not that we don't want to give back our creditors what we owe them etc, it's just by the time the IVA is finished we'll have to start and sort the CO out, and just feels like it's never ending and i'm getting a bit stressed out about it all.
What do you think the chances of us selling our house, paying the CO off and putting some of the equity into the IVA sooner rather than later? and then renting? To be honest neither me nor hubby are bothered at the prospect of losing the house, tbh that is also causing me stress as needs so much work doing to it and we'll never be able to afford to sort everything out (we'd need at least £10,000 to do everything that needs doing to it - roof fixing, most of the walls re-plastering, new floorboards, damproofing etc etc). Also if we did do this would we be able to use some of the money as a deposit to rent? we're also thinking of applying to local housing schemes for housing. There'd be about £12,000 left if we could get what it was valued at after paying the mortgage and CO off, in our proposal it states we'd have to release £5000 into the IVA.
Hope all my waffle makes sense? Also any advice is greatly appreciated as feeling a bit stressed by it all at the moment - it just feels like when you sort one thing out something else comes up iykwim?
Sorry to hear of your problems, you should be enjoying your kids at the moment, not worrying about money!
You would have to get the permssion of your creditors to sell the house as they will have put a restriction on it, but if you were to make more than you need equity release wise once the mortgage and loan were paid off, then they may let you. The rest of the money would need to paid across to the IVA, but I am sure they would let you keep some for a rental deposit.
Best person to speak to about this would be your IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Please also consider that many letting agents will require the rent 6 months in advance on a continual rolling basis. That can mount up to quite a sum for some areas!
It sounds like a great idea to me if you have no emotional ties to the house, and will mean that once the IVA is concluded you have absolutely no debt whatsoever. Have a chat with your IP to see what they would recommend.
