Next month our fixed rate mortgage finnishes and had a chat with them and our payments will reduce by £352!! (at current base rate its a tracker).
There has been quite a few people on here over the last 6 months asking how the savings will be split, but have not heard anybody on here yet saying how there's went.
Our supervisor suggested a couple of months ago that it could be 50/50. Last week she seemed a bit cagey on how its gonna be done!( We will have our first review in October)
We would be happy to split it 50/50 just to save a bit of money just in case anything big blows up!!
Just wondering has anybody gone onto their new rate? Or what would be the protocol for this?
We did mention our mortgage fixed rate would end but nothing was mentioned in the paper work how it would be dealt with.
Thanks
I've gone down to standard variable rate and saved £250 but this was part of my i&e ,also stated rates are going to increase soon so they accepted my new rare from start
Personally I would think that the additional money each month will be taken into the IVA - I would ask again for clarification, but am not sure if you will be get 50%/50% split
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Having had the same issue we were advised a new review/I&E will be done to cover the changes - this then also gives you a chance to say if anything else has gone up or if you are struggling - then a new payment amount can be established reflecting the additional spare income if any but also allowing for and increases in expenses if necessary - eg petrol/gas etc. So it might be that if your mortgage drops by £352 but gas and petrol have gone up by £100 then the difference really is only £252 etc ... however your IP should be able to advise you of exactly how they approach these issues and if you don't get a straight answer I would email the IP direct and ask for clarification. Plus don't forgot if its now a tracker then chances are interest rates will only go up from here on out making that difference smaller. Good luck )
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
Hey thanks for all your answers, will put a post up when it comes to the crunch!. If it all goes in and after another I&E our budget is adjusted to take into account the rise in fuel, food, etc than thats fine.
I would then like them to take into account the extra payable when or if the rates do go up.What would concern me is that if the payment goes up by £352 than later on rates do change a fair amount and they turn round saying they cannot reduce it more than 15%! That would sound abit one sided to me.
Im still of the opinion that rates will not rise by more than 2% over the next 5 years!! so will just have to wait and see.We were paying 5.14% so all the time its lower than that we would be better off.
Once again thanks for your replys, hope you all have a good Bank Holiday.
Baldy[:)]
Mine went down by £59 so a lot less than yours!! We were told to wait for annual review in 5 months time. As others have said if they want all make sure your I&E is correct as I suspect when the rates increase in next few months they won't keep reviewing I&E. Work out what would happen to mortgage payment for each 0.25% rise. The BoE rate will rise by at least 0.5% before Christmas otherwise 2012 will be a year that we all will hate!!! Inflation above 6% no thanks!!!
The road is 72months long starting September 2010.
Many thanks langerbridge for that, i did find out that for every 0.25% rise in the base rate our mortgage payments will increase by £23 per month.
I think your spot on by saying they wont decrease the monthly IVA payment by the same amount if or when it increases but only time will tell i guess.
At least if they let us keep some of it maybe enough to cover a couple of increases in the base rate than that would give us a bit of a cushion if things did start to go up.
I know alot of people have said about fixing it for the term of the IVA but i really dont think thats a good idea for us being on a very low tracker, but then i guess if we dont get any benefit from it what so ever than perhaps it might have have been a good idea who knows!
Thanks
Baldy
Isnt it 15% of the original amount you agreed when the iva was accepted, anything more needs a variation meeting.
Our contract states we must pay 310 a month to achieve a dividend of 34p in the pound,so we know the minimum that needs to go in the pot.
If you are overpaying by so much I cant see your ip worrying about bringing payments back down if the mortgage rates go up unless you go below the original pence in the pound or monthly payment agreed by creditors.
Your mortgage is a secured debt,and paying it shouldnt be compromised by a rise in iva payments if the extra funds are available.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
and make sure you are claiming for everything you need in your expenditure-maximum allowance can be claimed for food and clothing if your income allows.
Go to beatmydebt.com and check to see if anything was left out when your iva was agreed,and add them to your expenditure.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
I think it is wrong to say 100% what will happen as it depends on the terms of the IVA. A lot of the modern ones for example will treat it in the same way as other expenses on the income and expenditure sheet, once all expenses are recorded at the annual review you get to keep 50% of any surplus and hand over 50%. A number of posts on here from IPs have also posted the same.
Thats a very good point Andrea, i didnt really look at it like that.
One thing i have come across in the protocol is that the supervisor is required to review the debtors income and expenditure once every 12 months, then it states" The debtor will be required to increase his monthly contribution by 50% of any net surplus one month following such review".
Even in the proposal they have used the word"Estimated dividend".
At the end of the day i need to remember what it was like before we got the IVA and be a bit more Thankfull that things are a lot better for us now.
Six months down the line i sometimes think i forget how it used to be, so i guess i need to wake up and smell the coffe some times!!!!
Your Supervisor should not be cagey about what needs to happen at all. She is supervising your IVA and the answer to your question lies in the specific wording of the IVA proposal. Press her for a decision in writing next week so you know where you stand.
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