Hi we went into our iva 2 and hlf yrs ago when I was pregnant with our 3rd child, we were not behind on any payments but were often late, juggling peter to pay paul and with new baby knew it would only get worse. Iva via grant thornton was recommended by cccs.
One main conern for us was being able to move a few years into iva as we would have 3 kids in 1room, we asked gt if we would stilk be able to sell... we were told yes as long as equity remained same.
we tried to move last year, and reduce our mortgage there by helping us meet payment s but our mortgage comp said no despite never missing their payments.
Is there any hope at all of us getting a mortgage whilst still in the iva? Feel abit mislead, esp as we werent actually behind in payments till advice taken.
We are bursting at the seems and still have 2 1/2 yrs left, plus really need to reduce mortgage payments. Any advice very welcome, thanks
Have you thought about renting your property out with rent covering the mortgage, and you then renting a suitable size property whilst your IVA remains in place ?
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I don't think that GT are appropriately qualified to be giving mortgage or investment advice, and I think that they were merely giving you advice as to the effect on the IVA, rather than whether you would be able to get a mortgage.
Unfortunately it is extremely unlikely that you would be able to obtain a new mortgage with an on-going IVA. You could ask your current lender if your mortgage is portable (ie. you can transfer it to another house) but, even if that's possible, it is still unlikely that they will agree to lend you any more money. The rental option does seem to be worth considering. I'm not sure if GT would need to agree if the rent payments were higher than your mortgage payment but no doubt other experts on the forum could confirm this for you.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Stirling they only do the very simple and straightforward IVA's in house, only having 1 IP for thousands of clients, they need to outsource. Their main thrust of business is DMP's as the creditor benefits more in the long run.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Im not sure why GT.. I imagine foggys answer to be a possible reason.
I cant remember now why a DMP was not suitable, at that point we were not in arrears with anything, just regularly making late payments and knew that would get worst once the 3rd baby came & I was unable to work, maybe that was why that was not suitable, its only been two ^ half years but already feels like a life time ago!
we did consider porting the mortgage, but we actually want to borrow LESS which is the crazy thing, we want to move right out of the area, where we can get bigger house with less mortgage, so porting (if possible) would still leave us with a large mortgage payment which we were hoping to reduce.
Think rental is probably the answer, and Im sure we would have to prove any payment and rental fees to GT.
Nicola, glad to help but, just so I understand this correctly, did your mortgage lender refuse to port the mortgage despite the fact that you would be reducing the mortgage? I presume from what you say that any rent you pay would still be less than any reduced mortgage payment?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Porting a mortgage only mean that the interest rate and conditions remain the same - However as a mortgage is secured on a property - you still have to apply for a mortgage subject to the lending criteria. Porting a mortgage is really only useful to prevent paying back large amounts of redemption penalties. From personal experience its no quicker that a normal application and still subject to lenders criteria
Last edited by ginger323232 on Tue Jan 14, 2014 5:11 pm, edited 1 time in total.
Ginger you're absolutely right. I'm really just trying to understand where Nicola is trying to get to and, depending on this, seeing if I can help her find an angle.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
We are currently on std variable rate now with our lender, GT told us for the move to be acceptable to them the LTV would have to be the same as it is currently so that they didnt lose out on any equity.
we spoke to our lender and said we wanted to port the mortgage and borrow less, they said this was ok. It took along time to get confirmation from GT on paper that a move would be agreed, when we finally got the place ready to sell, accepted an offer and found a new place, many months had passed.. our lender then said that they would not agree a new mortgage with the same LTV (banks criteria now needing much larger deposits) which meant we need a bigger deposit. Hence we had to decline offer and take off market.
I since realised that as Ginger says.. whilst they were talking to us on phone about 'in theory' in practice a new lending application was probably needed and we would very likely then be declined on our credit status.
I was quite unwell at the time & stress was too much so we just dropped the whole idea, but year later I found this forum and wanted to know our options again if any about getting more space for kids.
