Northern Rock / IVA / DMP Question

darloboy_2

Hi

Some advice needed, but I’m not sure if this is the best forum.

I am one of the many who are stuck with Northern Rock on a variable rate due to an LTV of 118%. It’s obviously looking like I am going to be stuck with the rock for an eternity as I am unable to get rid of the unsecured loan element.

One colleague suggested I strip the loan element out (this is around £15k out of an £81k borrowing), and put this into my debt management plan (I am about a year into that out of 5). This way, I may have a chance of moving my mortgage debt to a lender that has better interest rates.

I am in a DMP rather than an IVA as my stance was that I spent the money so it is my duty to repay it, and the DMP has been going well thus far, but I’m also not sure how Northern Rock would react to such a move, and also what the stance would be of my current creditors (the DMP value is around £20k).

Any advice would be very much appreciated. Another colleague has mentioned biting the bullet and going for an IVA instead, as my property is worth about the same as it was when I purchased it 3 years ago, and he thought the IVA clause about looking at equity in your property towards the end of the IVA would not be relevant as he did not think property prices would be sufficiently increased by this point.

The only option I realistically have may be to stay as I am currently, but I wanted to gauge any opinions or feedback nonetheless.

Regards
Craig

MissKJ

I am not really sure on this,|I am new to DMP's, but I thought you could only put Unsecured loans into it?

darloboy_2

Yes the element over 95% (the £15k) is unsecured.

Pipster29

darloboy - i used to work for Northern Rock as a mortgage advisor in the mortgage review dept until I was made redundant a couple of months ago. I'll take it when you say your loan to value is 118% then your on one of the together products.

In July this year Northern Rock decided to introudce a range of hidden products just for together customers. Basically they had recieved such bad press about the arrears book they brought this product in for people but never ever advertised it. It was meant to be offered to customers who were really struggling are who were thought to be about to go into arrears. I'm sure the rates were around 5% fixed for a period of time. I would give them a ring and mention this to them and see if they can reduce the payment.

I couldn't say for definite if it is still available as I haven't been there since the end of July

I hope it all works out for you

RAS

it would be a lot better rate than you have any chance of getting in the wider world.

Pipster29

exactly!!

I'm meeting up with one of my good mates tomorrow for the big newcastle v sunderland game so will ask him about it for you

darloboy_2

thanks mate, much appreciated!