what effect does an IVA have on mortgage payments

[les]

WHAT EFFECT DOES AN IVA HAVE ON MORTGAGE PAYMENTS?

[MelanieGiles]

Hi Les and welcome to the forum.

A mortgage is a secured creditor, and these are not included within IVA's as the loan needs to continue to be serviced as it is secured against an asset. Non-payment of that type of loan will put the asset (usually your home) at risk.

Of course, you do need to ensure that you can continue to afford the mortgage payments as well as your IVA contributions and other household and personal costs.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[les]

Hi Melanie
Many thanks for your reply,it was as I thought to be honest,the mortgage payments are our main problem as we re-mortgaged a while ago and are now paying in excess of £11OO.00 per month,I think the term is affordability.
Regards
Les Jones.

[MelanieGiles]

Hi Les

Is the mortgage you have a repayment mortgage? If so you might like to look at the alternative interest only option as this will be cheaper.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[les]

Hi Melanie
Yes it is a repayment mortgage,however our age may be a problem,I am 55 and my wife one year younger,I want to retire at 65 and my wife earlier if poss. If we go to interest only will that not extend the term of the mortgage?
Regards
Les.

[MelanieGiles]

Les

You ages will not be a problem in the eyes of your lender, but you are right to be concerned about what happens when you retire. An interest only mortgage is exactly that - you only pay the interest on the debt, it never reduces.

What is your overall situation? Do you have a number of unsecured debts - if so how much. And what is the value of your property and the amount you still owe on the mortgage? Having taken account of your mortgage payments, how much money do you think you have left to service your unsecured debts?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[les]

Hi Melanie
will need to work out exactly what we owe plus the other unsecured debts and get back to you (if you don't object)possibly Monday if convenient for you. Our biggest problem is we never seem to have any disposable income,as we both work full time and shifts,it's a pretty miserable existence!
Best Regards
Les.

[MelanieGiles]

Hi Les

I am here all the time to provide advice to the best of my ability. You take the time to get the information you need, and then we will see what we can suggest as a solution for you.


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk