Northern Rock and an IVA - anyone managed to get one?

fastnet

Hi

We have been on a a DMP for about 18 months now and were making good progress despite large debts (£90k approx) but our Together Mortgage (95% mortage and £23k loan) with Northern Rock is about to increase by nearly £400 from September, this is a large chunk of our surplus to our creditors. So we have had to make some tough decisions and we are looking to sell the house (fingers crossed), rent and enter into an IVA to clear the debt within a realistic timeframe, as on the DMP there is no end in sight.

I have spoken to Payplan today - who manage our DMP - and they explained that although an IVA would be an option once we are renting and have increased our surplus to £300 +, because even after selling the house we may not have enough to clear the loan element of the Together Mortgage we will not be able to apply for an IVA as Northern Rock are not accepting them.

Does anyone else have any experience of this?

I am so annoyed that NR are going to potentially hinder our attempts to become debt free, such a kick in the teeth. And to make it worse whatever portion of the loan we cannot pay off from the sale of the house will be charged at 8% about the standard variable rate currently 7.45% so that will make a nice healthy interest rate of over 15%!!

We wont be n a position to do anything until we sell the house and who knows perhaps NR will of reversed their decision but unlikely I think as they need as much money on their balance sheet as possible.

Would love to her anyones thoughts/advice/similair experiences.

Cheers

GeorgeUK

I don't suppose you'd be able to switch to interest only for the mortgage in September?

Hang on, payplan said that you should go into an IVA after you sell the house? Usually people go into an IVA to protect the house instead of going bankrupt.