Debt-Advice-Forum-UK

[ladybug]

Hi I am in my first year of my IVA & my mortgage fixed rate has finished and my lender says they cant offer me a remortgage today. I am really worried about a clause which is in my IVA modifications and not my original propsal-can they do that change my IVA?

The clause states I must remortgage in the fourth year in my IVA for the benefit of the creditors. My worry is what if I can't remortgage? My current lender wont offer me a fixed rate they say they don't offer this type of mortgage any more its been withdrawn. If I cant remortgage today how am I going to do it in 3 years time? My mortgage payments have gone up £150 since the fixed rate finished we are really struggling now.

It says that not remortgaging could breach the IVA & it says they could petition for my bankruptcy if the IVA is breached. I don't want to go bankrupt that is why I took the IVA out in the first place!

[Admin]

Hi Ladybug. It seems that many people are finding that they can not remortgage. Apparently, there are only a few lenders currently that will entertain people in a satisfactorily conducted IVA. Further, the amount they can borrow has reduced significantly.

It used to be upto 90% of the value of the home now it is looking closer to 80% loan to value. Unfortunately, if the IP says the IVA is not satitfactorily conducted then the chances of any remortgage is NIL currently.

So you are right to feel concerned. The first port of call is to write to your insolvency practitioner explaining that your mortgage and other bill payments have increased.You are best outlining your income and expenditure-dont forget because you may be paying £36 per month on a sky package doesn't mean that will be accepted by the creditors (there is a balance to be struck).

Some IPs will hold a variation meeting to reduce the monthly amount sometimes by lenghtening the term of the IVA. Let me know how you got on.