www.iva.co.uk

Ok so my mortgage is on SVR and as the interest rates have decreased so has my mortgage payment by nearly £100. I can still afford within my budget to pay the £100, if I made another mortgage payment so my new payment and the £100 which would make it back to the amount I was paying originally on my income and expenditure. Will two payment be allowed do you think? The main reason to be honest is that I do not want my monthly payments to increase because of this and also if the interest rates go back up again I may end up paying more again anyway. Not sure what to do?

You may well be able to afford to fund this £100 extra out of your budget now, however, when you do your next I&E with the new, reduced, mortgage payment, I imagine that the reduction will then be added to your regular IVA payment going forward. Additionally, a few years of overpayments will increase your equity stake which may be clawed back at the equity release stage of your IVA.

Yes but what I am saying is, ill have x 2 mortgage payments going out per month. One for my minimum payment and then the over pay of £100. I'm not worried about equity as i have hardly any and hopefully my parents will help me to pay the iva before it gets to this stage.

In theory, as you are sacrificing other allowances for the extra payment, there would be no issue .... however, as an IP, seeing that a client can afford to cut allowances by £100 on a regular basis would make me question the level of allowances ..... if you can do this to increase your mortgage repayment, you should do this to repay more to your creditors.

Personally I would keep paying the amount you are used to whether it be one or two payments until your review and then raise the issue ..by which time interest rates may well have gone back up

Thanks lulu. I pay around £450 a month at the moment and payments will go to £389. I was going to just make the payment and then an overpayment of approx £60 So i am still paying my original amount of £450. I was just concerned that I may get asked why 2 mortgage payments were coming out every month. What do you think?

I think it may well be questioned, who knows.