Chelsea Revaluation

hunty3

Following my newly started IVA. My mortgage company (Chelsea) revalued my house. The valuation comes out 9k less than the mortgage. They wrote to me with this info and said they would pass this onto the arears dept.

What I am confused about is I have NEVER missed a payment on the mortgage, so why should it be passed to the arrears dept?

Any advice would be great. Thanks in advance.

trudij

I dont know, and Im sure someone WAY cleverer than me will be along to help soon, but Id guess that because you are in an iva, you have to be moved to the arreers department 0 as they would deal with debts??

It might mean that your mortgage payments might go down though?? so it could be a good thing..... (but dont quote me on that - Im juust guessing) hope it works out ok

x

BlueIsTheColour

There could be a clause in your mortgage about the LTV, in that when you borrowed it was perhaps a 90% mortgage but now due to the price fall that could have sent you LTV to more than 95% and they may expect you to make up the shortfall?? Am not sure at all, I do remember there being lots of press about this for the Abbey who recalculated lots of LTVs on one of their mortgage products and then wrote to people saying there was a shortfall, but if I remember rightly, they then didnt pursue due to all the negative publicity it attracted.

I would suggest calling them to find out exactly whats going on, and perhaps dig out the T&Cs of your mortgage to check for any similar clauses.

Hope it all works out for you

hunty3

Thanks, will call them Monday...