I'm really worried. I have been in an IVA since June 2009. My 5 year fixed mortgage deal ends in December. Northern Rock have told me that I will have to go on a SVR mortgage based on the bank on england base rate. I think that, at the moment, my payments will decrease by £50 each month but I'm worried if it goes up in the future. Should I tell my IP about this? What should I do?
Hi
Let your IP know when your payments change, they may adjust your payment into your IVA.
Try not to worry, if your mortgage payments increase your IVA payments should decrease
Regards
Definitely keep your IP in the loop about the decrease but if it does go up, tell them about the increase too. IP's work with us as well as creditors so they do understand these things can happen and will try and help. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
We will be going on the svr with NRAM in February, this should have been discussed when the paperwork was being prepared for your iva.
If our mortgage payments do rise in the future, obviously the amount we pay into the iva will reduce, worrying as we have to achieve a minimum dividend so this could potentially extend our iva.
We were aware this may happen whilst applying for the iva, but however long we have to pay in to the iva, it will never be the 20+ years we would have had to pay previously.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
Always best to keep your own IP updated with any changes. Most IVAs allow for the IP to amend payments by up to 15% each way without having to formally get creditors agreement. Either way, they have to make sure the IVa is still reflective of your position and they can only do that if you let them know what is happening.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Hi and welcome to the club !! There are a lot of us in a similar situation praying that the interest rates dont go up. It is inevitable that they will at some point of course and we will all be in the same boat.I suspect that our IP's will have to look at the situation when it happens and I hope that creditors will understand the situation and go with the flow, at least I live in hope.........at the end of the day the alternative is failure and the creditors will be worse off so I pray that good sense will prevail. One thing I am learning is that there is no point in working yourself up about things just do your best and keep up your payments. Good luck
Karen[;)]
Ive been reading in the news a lot recently that the "experts" think that rates will not be increased until the middle of next year at the earliest. Fingers crossed that this is the case as a rate increase will increase mortgage payments and squeeze disposable incomes at a time when many are struggling, esxpecially those in IVAs.
One point to make however is that those same experts had previously predicted that the rates would have risen by the middle of this year. I guess this shows that it is impossible to predict when the interest rates will go up as the economy is too volatile.
These days creditors are a lot more accomodating when it comes to making reasonable changes to IVAs due to different circumstances. This means that if the worst happened and your mortgage increased your IP should be able to help.
