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Hi All, my 5 year fixed mortgage ends this month and I go on an SVR based on the bank on england base rate which means my payments will decrease by £50. Should I tell my IP?? I already feel I pay too much in my IVA - £450 and this would help a lot. If I told them in my annual review next summer would that be wrong? I was worried in case my mortgage payments increase.

Hi, I'm afraid you will have to notify your ip.about this and there is a good chance that you will have to pay some, if not all of th money across.

However, if you can prove that your expenditure has gone up then you might be able to keep some.

You should tell them now in case they want any of it paying back next year.

I'm curious as to why you feel you pay too much in your IVA? If it is just the number feels high then as you know its based on the disposable income so if you can afford that then thats the figure. If on the other hand it is becasue it leaves you short every month and your budget hasn't been set right speak to your IP about getting your I&E reviewed together with the decrease in mortgage payment and you may find that you don't have to pay any over at all - only your IP can sort this out for you though.

Let us know how you get on.

Regards,

You do need to tell your IP now, if you leave it until your review next summer you may find that you have a whole load of payments to make up which could either extend the term of your IVA or increase your monthly payments and make it harder for you.

Why do you already feel you pay too much? is your I&E realistic?

I suppose at the last I&E review I wasn't generous enough with my monthly figures for petrol, food etc. Every month my salary fluctuates so I have to ring the IP and make extra payments. I do believe that once a figure is agreed by the IP / Creditors then this payment should be fixed, like a loan and not changed. It is not realistic for creditors to expect us never to go out to socialise, never buy clothes, never have a break. It is doomed to fail if that is the case. Also how generous can I be with my monthly household budget? My first IP advised me to put a sum in for pets (even though I don't have any) as she said it is better to be "generous with the figures" but my next case officer disagreed.

Your I&E should reflect what costs your really have so putting an amount in for pets if you don't have any is not right. you should hoave make sure your alloweances for food , petrol etc are realistic otherwise you'll come up short as you are. Creditors provide an allowance for all the thinfs you mention, it may not be as much as you like but there is a budget so make sure your IP is letting you know of all the available allowances.

Keep receipts for your food and petrol etc and sounds like you need a proper review asap.

Regards,

You should put down exactly what you spend and you never be told to put things down that you don't need.

I'm afraid there is no way the payments will ever be fixed. The creditors want, and should have, as much back as we can afford to pay. If you are struggling that much then please ask for your I&E to be reviewed