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Posted: Fri May 16, 2008 4:41 pm
by Debt Monkey
Hi I am two years into my iva, i have equity release clause but my ltv is about 90% so not likely to be able to release equity. Shoul I switch my mortgage to interest only? This would save me an additional £100 a month which could be used to pay into my iva now?
DM
Posted: Fri May 16, 2008 6:44 pm
by Adam Davies
Hi
Take advice from your IP
On one hand moving to an interest only will free up more monthly money for your IVA payments,however your mortgage balance will not decrease so your equity will be affected.
Regards
Posted: Fri May 16, 2008 7:32 pm
by MelanieGiles
A lot of lenders are now reluctant to allow their customers to revert to interest only unless they have a repayment tool in place - such as an endowment policy, but there is no harm in asking if it would be possible.