www.iva.co.uk

Been ages since my last post, work has been absorbing a lot of time...hope things are good for all.

Something is nagging away at me, which is our mortgage. Although there's no immediate action, it is looming up.

We are currently on an interest-only mortgage (it was repayment pre-IVA) with a fixed deal of 4.79%. Our deal ends in January 2012 and we were told last year by our mortgage company to call them in October if we wanted to discuss a new deal (suspect nothing will be on offer owing to our lack of equity).

If the fixed mortgage deal simply expires, our mortgage defaults back to their standard rate (known as the SVMR apparently), which is currently 2.50%.

Clearly this has the potential to generate some significant additional spare money in our I&E, but equally we will be at risk of rate rises, which seem likely later this year or sometime next year.

Anyone had experience of this situation and what, if any, action they took in respect of their IVA?

Hi - Lots of posters are in the same position. Talk to your IP when it happens and see what they say...you may have to pay across some of the spare cash while interest rates are low but equally there is flex in your payments when rates are high. x

Hi, I had the same problem, my fixed rate deal with santander ended in June this year. I received a letter from them asking me to contact them if I wanted to discuss available products but when I did they couldn't/wouldn't offer me anything other than the standard variable rate. Luckily my payments have reduced this month by £30 but obviously if interests rise then this could cause problems for me x

you will be ok if the rates go up as you will just adjust your i@e to show the new rates.any money you are better off with now will simply go back to the mortgage payments.
all the creditors know this will happen at some stage your ip will know the ropes if you give them a call