Northern Rock Strikes Again

Ara_3

Hi,

I've been in my IVA for a year, just having my annual review. When my IVA was being drafted, Northern Rock insisted that i go over to an interest only mortgage which i did and it's all been running smoothly until now.

I had to resubmit an application to remain on interest only for a further twelve months which has been approved but they want to ease me back into a repayment mortgage by increasing my payments by 33% so I'll be paying the interest element and 33% of the repayment element and presumably next year i would have to pay 66% of the repayment element. Northern Rock wont let anyone remain just on an interest only apparently that's not an option for more than 12 months. I have spoken to my ip and they say i need to shop around for a mortgage, they will give me a reference saying that all my iva payments are up to date etc. they cant recommend anyone which i understand but i don't know where to start! Most banks are just going to laugh at me! I know it's not the end of the world if i cant remortgage' i have to provide evidence that i've tried to remortgage and they will do a variation!

If Northern Rock had replied to my application before (I sent it in 6 weeks ago) I would have had more time to get shorted.

Any ideas anyone? It would be appreciated!

FoggyBrain_2

All I can suggest is to find yourself a whole of market broker and see if he / she knows of any suitably IVA tolerant companies (though, to be honest, I doubt it). Apart from that -- if your mortgage payments increase you will need to do a fresh I&E with your IP to see if some adjustment can be made there to accomodate the changes.

Charco_2

Ideas... try not to worry or stress about it.

Can't have it both ways NR: you insisted on interest only, you probably insisted on a 6 year IVA and not a five year IVA...

They can either stop forcing you onto a repayment mortgage or they can accept that the dividend in the IVA is going to be affected... they are giving you two contradictory instructions (albeit from two separate departments that wouldn't know their !!! from their elbow) and they can't have both.

Your IP cannot recommend anyone BECAUSE THERE IS NO-ONE - an exercise in the pointless even bothering to shop around.

Get your IP to contact NR on your behalf - the insolvency guys, not the mortgage guys. Explain that you are happy to vary the proposal to reduce your repayments to the IVA and increase your repayments to the mortgage but obviously NR (as probably your biggest creditors) are going to have to agree to this... you cant afford to do both obviously as you cannot magic money from nowhere!

It's up to NR then to agree to this in your IVA or to overrule the instructions from the mortgage guys and leave you on Interest Only...

Ara_3

Thanks for your replys!

Amazingly enough my iva is for 5 years, providing i try and remortgage after 54 months, if i cant it will go on for 6 years.

I'm not going to worry about it or loose sleep. I have been looking online at mortgages, they want booking fees which is out of the question. A bad credit mortgage is out of the question too as the interest rate is so high, my creditors wouldn't get anything!

If i cant remortgage in 4 years time, my mortgage will be down slightly so it looks like I'll benefit from Northern Rock's change of mind but Northern Rock and my other creditors would get less

Daisy4567

I've been interest only with Northern Rock for about 4 years and have just entered an IVA - this wasn't mentioned at all??

Strikes me that with Northern Rock it's one rule for one and one rule for another - as they are now taking us for Repossession even though over the last 5 months we've paid more than the required amount!

Used to think they were quite good but now not only can you absolutely not get anyone to own a problem, you get pushed from pillar to post and given answer after answer all of which are different and a load of rubbish! (As confirmed by our Mortgage Arrears Specialist!)