DMP or IVA?

needtofightback

Hi, I am trying to sort out my finances & have done an on-line check with cccs who suggest an iva or dmp.

I was thinkinking iva so debts will be wiped off, as i'm 55 & on long term incapacity. I have noticed that in the 4th yr I can be made to remortgage, I wouldn't want to do that at nearly 60 & doubt i'd get a mortgage anyway. My worry is though could i be made to sell?

Also my debts all arose as i lost my job through sickness, in the better times i bought 2 properties as buy to lets as an investment for pension, i remortgaged my property on interest only to fund the deposits. With the down turn, 1 is in negative equity, & the other & my home have approx 20% equity but as i'm interest only i'm already worried i won't be able to repay the mortgage even with the other properties. I'd be grateful for help to any of the queries..

LilacPixie

Sorry I am no expert but as you are interest only how long do you have before you have to pay lump sum payment? Is you rental property always tenanted? what will you do if it isn't? any scope to move into your rental property and sell your homes with equity?

All this would do is stave off the wolves thought because ultimatly the mortgage company will want paid.

If you are on benefits I doubt you would be accepted for an IVA as really what do you have to offer?

Hannah_10

How much is the central question here, or more accurately several of the central questions... How much do you owe and is it secured or unsecured etc? Also how much are you receiving as income and from what sources (benefits, rents etc). Then last one, how much surplus money do you have at the end of the month to offer your creditors?

needtofightback

Thanks Lilacpixie & hannah10

My mortgage to run another 15 yrs, both properties tenanted. Not really an option to move into the one in negative equity. Took 30k from our property for deposits, lost 10k on one at mo but gained same on the other so at moment we are just breaking even. Hoping upturn (when it arrives??) over the next 15 yrs will pay off our original mortgage of 50k. If we have to sell buy to lets before then, any equity will be used to reduce our mortgage on the family home, but as already said feel like we've more chance of paying off if we keep them & they have always paid for themselves.

Trying to stay positive & believe we will be able to pay off before I'm 70!! If not though the decision we made at the start of our dalliance as landlords was if we don't make any money & we can't repay the mortgage at least we'll be too old to bother & will rent somewhere.

My debts are all credit card & unsecured loans taken out when i was earning £1700 mth, my incapacity benefit £365 mth, but uou never think it will happen to you. Our debts are joint & my husband is self employed. We have been paying mortgage & secured loan arrears off at £250 mth which will be repaid in full in 2 mths. I would have that money to reallocate.