IVA - NorthernRock Togeather product help

DotNetter

Hi all

I'm considering an IVA but am a little unclear regarding how my debt should be apportioned.

I owe NorthernRock a total of £157k but because this was taken out under their 'together' product £30k of the debt is unsecured.

When I completed the CCCS sheet do I put down the total owed (£157k) as my mortgage or do I need to split it out and say that actually the mortgage is only £127k and then put down the £30k as a personal loan?

I ask because I'm a little worried that an IVA will be refused by NR. Unsecured we owe approx £60k so NR hold 50% of the vote - if they refuse then I'm screwed

Does anyone know if NR generally refuse or are they pretty good with IVA's?

We've never missed any payments on any of our debts btw and have extremely good payment history (not sure if this matters or not).

Regards,


Wayne

gardenerswife

Wayne,
Sorry to be the bearer of bad news but Northern Rock were the only ones to refuse our proposed IVA - and they held the majority vote. We had been in a dmp for five years but they said we could afford to pay eveything back - clearly we couldn't. CCCS advised us to put the whole thing down under mortgage when we had a dmp - but on our propsed IVA we were told to put the unsecured part down seperately from the mortgage. I had rung NR previously and asked their thoughts on IVA's and they told me that they assessed everybody individually - but I spent alot of money to be refused!!

thecableguy12

When I worked in iva northern rock always rejected on such a high amount and also they used to secure the unsecured element to the secured loan if they suspected the customer was considering an IVA to protect them self, often they would reject or accept with increase in monthly payment and term ext usally 72 months, we also used to stop accepting iva applications with NR customers because we could tell they would be rejected, northern rock sometimes vote themselves or by proxy via eversheds llp, hope this helps.

DotNetter

thecableguy12 wrote: »

When I worked in iva northern rock always rejected on such a high amount and also they used to secure the unsecured element to the secured loan if they suspected the customer was considering an IVA to protect them self, often they would reject or accept with increase in monthly payment and term ext usally 72 months, we also used to stop accepting iva applications with NR customers because we could tell they would be rejected, northern rock sometimes vote themselves or by proxy via eversheds llp, hope this helps.

I thought this might be the case.

It's REALLY annoying. I owe too much 'unsecured' (which never actually end's up as unsecured!) to do an IVA because of NR but if they secured the unsecured part and then I went BR instead of an IVA I would guess that I would have maybe £10k of equity in the property so I would be expected to free this up either by getting someone else to buy the beneficial interest (who do I know with £10k!) or by selling the whole house...which is the one thing we simply do NOT want to do.

life sucks big at the moment.

Cheers


Wayne

gardenerswife

Hi,
Get some advice from one of the free debt agencies re options - CCCS or ask questions on bankruptcy forum, available to u.
I ended up going bankrupt and so NR lost the unsecured section of the loan into my pot of debts as they didn't try and change it into a secured loan but have been ok with me carrying on with the mortgage. Doesn't make sense as they would have got something from the IVA

DotNetter

gardenerswife wrote: »

Hi,
Get some advice from one of the free debt agencies re options - CCCS or ask questions on bankruptcy forum, available to u.
I ended up going bankrupt and so NR lost the unsecured section of the loan into my pot of debts as they didn't try and change it into a secured loan but have been ok with me carrying on with the mortgage. Doesn't make sense as they would have got something from the IVA

Already posting on the BR forum for other questions I've got and I have an appointment to discuss IVA with CCCS next week.

I assume when you went BR you had no equity in your property?

Cheers,


Wayne

gardenerswife

Hi,
Just saw your posts on bankruptcy forum. Hopefully you will find their advice really helpful - I certainly have.
Basically I started on dmp five years ago - one company put order on property - so that makes it a secured loan very early on. So have secured loan and mortagage on our property. I had to get house valued for IVA proposal - asked agent to price for quick sale and it does need modernising - but like you I was desperate not to loose house. In end had about £5k in equity and I was very lucky to have a family member who has bought the beneficial interest on our property. Our OR wanted full amount - others have OR's who they have made offers and been accepted. Think I have read somewhere where one family have paid a fixed amount over a number of years to buy beneficial interest back ( and it doesn't have to be done straight away). There will be a solution - its just hard to see any light somedays

DotNetter

gardenerswife wrote: »

Hi,
Just saw your posts on bankruptcy forum. Hopefully you will find their advice really helpful - I certainly have.
Basically I started on dmp five years ago - one company put order on property - so that makes it a secured loan very early on. So have secured loan and mortagage on our property. I had to get house valued for IVA proposal - asked agent to price for quick sale and it does need modernising - but like you I was desperate not to loose house. In end had about £5k in equity and I was very lucky to have a family member who has bought the beneficial interest on our property. Our OR wanted full amount - others have OR's who they have made offers and been accepted. Think I have read somewhere where one family have paid a fixed amount over a number of years to buy beneficial interest back ( and it doesn't have to be done straight away). There will be a solution - its just hard to see any light somedays

Thanks for the info.

At this stage I'm still pretty calm about everything but my OH has been in tears and she just keeps telling me "there must be a way" - I try to explain to her that really there are only several options open to us but I think she's in denial

We have estate agents coming soon and I really have absolutely no idea of the value of my home. I'm keeping everything crossed that it's worth enough to pay off our mortgage and unsecured debt so that we can simply sell up and rent privately - i know it's far from ideal but so is anything that ends up with us in the same situation at some point over the next few years but with a BR or IVA on our credit history as this would make it very difficult to then rent and we would be screwed

Cheers,


Wayne

Deep_In_Debt

Plenty of people on the BR board rent and didn't have a problem with it. As long as landlords are receiving rent every month then they probably don't care!

Pop over to the BR board and ask the lovely peeps over there for advice about BR and renting.

There is always a way out of it...it's just a question of finding it and with the help of this forum, you will find it but it may take time.

Good luck.

Deep_In_Debt

Sorry, just re-read your post and you have been on the BR board...it's been a long day.

cheapround

Hi Dotnetter

Not sure if this will help, but it might not be bad news from Northern Rock.
We had our IVA agreed about 6 months ago, we owed more or less the same as you with a together loan of about £27k.

We arranged the IVA through Synergi (ok they were pretty rubbish but it went through!!) Northern Rock did not even bother to vote on our IVA application!!! So now we are paying just under £500 a month and our together loan has been written off. We still have the Northern Rock mortgage on the variable rate as our product expired and we had to put the mortgage on interest only as part of the arrangment.

I have to say everytime I have ever had to phone NR they have been so helpful and admit they are there to help!

Good luck if you do proceed with the IVA.