Help Please

itsmeinnit

We have spoken to the CAB who have advised to go down IVA route however we do not have sufficient residual money.

have spoken to the mortgage co who refuse to help by reducing payments or switch to interest only despite being a good customer.

I now believe only way out could be to go voluntary repo & rent a house leaving residual money for the IVA BUT we do not want to go BR.

Is this possible?

I could try and sell the house but is worth approx £10k less than the mortgage in a quick sale scenario and there is early repay fee of approx £10k

can these shortfalls be added to an IVA?

Cheers

So_Sad_Angel

Hi itsme & welcome.

Sorry don`t know much about the IVA side of things but with regards to the mortgage company..

If CAB have done some kind of budget planner/financial statement then might be worth calling mortgage co & speaking to collections to see if they can help before the situation gets too bad.

My experience of mortgage lenders (btw I was a Mortgage Adviser some years back) is that they always say `no` at first to deter the `try-ers on`....if you can show that you are genuine & have taken advice then they may sway on their decision.

Its in their best interests too as `interest only` for a few years keeps you as a customer & saves them a potential bad debt situation.

My advice is keep at `em.

Angiexx

itsmeinnit

thanks Angie

I have called them three times now and gone a month in arrears to try & force the argument a bit and they are having none of it.

despite all the literature saying talk to the mortgage lender they will help you it seems they have no interest at all - i have been straight with them from the outset to no avail

sniggings

m8 you still can go BR and keep the house as long as its in negitive equity,but any loans secured on the house would still need to be paid as well as the morgage,IVA are very hard to keep paying as they dont allow much to live on and can be very hard to change once set up,say if you were to get less hours at work,they still might not change the amount of your repayments,

why Dont you want to go BR? it's a scary word but not so scary on the other side of BR

So_Sad_Angel

itsmeinnit wrote: »

thanks Angie

I have called them three times now and gone a month in arrears to try & force the argument a bit and they are having none of it.

despite all the literature saying talk to the mortgage lender they will help you it seems they have no interest at all - i have been straight with them from the outset to no avail

Have you spoken to collections? Also get a copy of the mortgage/banking code & quote from it. Personally I would even be prepared to complain that you don`t feel that your case has been dealt with empathy & support.

Repo in the lenders eyes is the very last resort & interest only option would cover their interest sufficiently to keep the account in order....its a no brainer for the lender really.

Not sure if this will help but the Council of Mortgage Lenders have some guideines that may help

http://www.cml.org.uk/cml/consumers/guides/worried#1

money_fool

Hi there
I had a similar issue with the C&G when talking to their call centers. All they wanted to do was to increase my payment to clear the arrears with no regard for any other debts I had. As a last resort I phoned the nearest branch I could find and asked to arrange a face 2 face discussion with someone. The difference in response was amazing. Within 20 mins (over the phone) they changed my repayments to interest only (saving me about £1000 per month) and I was able to clear my arrears in a few months. While this means I am only ‘renting’ my house – it’s a lot cheaper than actually trying to really rent a similar house by going through a rental agent. With the low interest rates on offer at the moment it is worth trying. Even though I had a penalty clause that was still valid I did not have to pay any extra for changing my mortgage. The extra money I have available each month has helped me sort out a lot of other issues.

I have no idea who your mortgage is with – but if it is with a lender who has branches try my approach. Good luck!!