IVA with Northern Rock

DeBilde

Hi,

I am £76k in debt with £24k owed to NR from the unsercured part of their together mortgage. As they own more than 25% of the debt I am guessing they are my only stumbling block to getting a vote in favour.

What are NR like to deal with in regards to an IVA? Any experiences anyone?

Regards

David

Charco_2

You could still get them to agree however their new game plan tends to be to insist that you move to interest only and that your IVA will last 6yrs not 5... They're not impossible to deal with but can be difficult!

Just to add, if the debt could actually be repaid within a reasonable period of time, NR are likely to want you to go into a DMP instead.... however i would say £74k of debt is not likely to be repaid reasonably in a DMP.

***(point of interest - if you do go for a DMP, you're better off not declaring your mortgage as a "together mortgage". Because you are paying that loan off alongside your mortgage over a 25year period, the contractual monthly repayments are actually rather low. If it was to be included as part of you DMP Payments they would be picking up one third of your monthly disposable income which is likely to be MORE than your contactual payments anyway, so paradoxically you'd be opver paying your mortgage and neglecting your other outstanding debt!)

memberme

I too owed a large sum and partly with NR (30K).
They did exactly asd Charco said, 6 years and interest only mortgage.
This is not altogether bad as the 6 years on a large application for IVA also interests the other creditors who will obviously be benefiting from the extended period and agree more readily.

I had 200K debt including 30K NR

Am now paying £890/ month for 6 years.
i have to try to free assets in the house after 4th year but if I can't sucure a mortgage or loan, then the property is out of the count. This is effectively writting off 120K and being repaid (2 IVA run joint from me and wife) at 21p in pound, therefore 42p in pound for joint NR debt