IVA & our current mortgage - how will it affect us?

anyhelpgratefullyreceived

Hi all - I am new to the forum.

My husband and I have both been made redundant during the past year. We are now both working again, although I am now self employed. We have significant debts and are struggling to make our minimum payments. I am unsure what to do and have been looking at an IVA as an option.

Does anyone know how an IVA will affect our current mortgage? Will we loose our current agreement? Will we be able to get another mortgage when our current agreement lapses? Our current fixed term is in place for a further 2.5 years but we had hoped to move house this year - I am guessing an IVA would make this impossible?

We are hoping to start a family and we are not sure which way to turn as our debts are mounting. Although we are both able to earn good money it's not covering our bills and we will never be able to pay off these debts.

Does anyone have any ideas or advice? Thanks!
Anyhelpgratefullyreceived.

Charco_2

An IVA would have little or no effect on your current mortgage. A mortgage is a priority debt and so you would simply be expected to continue paying it. It will be listed in your IVA Income and Expenditure alongside other costs such as council tax, electricity, heat, food, tv, insurance, car insurance, car tax etc...

You will be expected to pay what you can afford from the income that is left over after all your essential costs have been catered for.

You will be able to get a new agreement when you current agreement lapses however while you are in the IVA you may be better to sit it out in your current agreement... a new agreement would probably end up being with a sub-prime lender at a worse interest rate!
There are no specific rules that would get in the way of you moving house really BUT moving house can be quite expensive and if your I&E has been done correctly you would not have much disposable income left over...

If you are unable to pay your mounting debts it would indicate that perhaps you are insolvent but you'd need to speak to someone to find out your options... pay nobody anything for advice, there are companies who will speak to you for free, companies earn their money from the solutions they put you into, they shouldn't be asking for up front fees too!

anyhelpgratefullyreceived

Thank you so much for this advice. It is really appreciated. I am speaking to CCCS so I will see what they advise.

Thanks!

Charco_2

Well let us know what they suggest.

There are always plenty of helpful posters on here who are willing to offer pointer or two