Does IVA affect your potential to change mortgage?

Dibdob

ok.....who is going to have the last word on this one???;)

herbiesjp

Dibdob wrote:

ok.....who is going to have the last word on this one???;)

Indeed - I do not agree with Conrad here, but none of this is really helping the OP


Having the IVA will affect your potential to change mortgage - why not change asap to reduce your liabilities? Sorry havent read all through the thread yet

Dibdob

Thanks Herb, but cannot change as we are locked in for another 6 months.
Have appointment with CCS tomorrow so we may not even have to go for an IVA...but just trying to obtain as much info/understanding as possible to ensure we go with the right/best option!

Have managed to pay debts/mortgage with no non payments so far, but this month have not had enough and had to have help from 'family' as hubby self employed and lack of work this month. Bringing in CCS as don't want to get to the stage where we have late/non payments and do not want to borrow from family anymore. Interest rates gone up again last week, so mortgage will rise again..already gone up £400 in 3 years!

jamesd

Conrad, while you make a good point about fixed rates in general, Dibdob is contemplating an IVA that will significantly impair the availability of competitive rate mortgages when it comes to the time to remortgage at the end of the fixed term. Since Dibdob has also demonstrated the ability to pay high rates for several years, recently as high as 9%, for a while, that appears to suggest that Dibdob does have sufficient margin for base rate changes to go for the longer term assurance of competitive rates that a lifetime tracker offers.

Dibdob, it doesn't take much to get brokers disagreeing abou fees or fees-free. Worth remembering that our host, Martin Lewis, recommends fees-free and whole of market, since that can help consumers shop around for the best deal.

MortgageMamma

Conrad, I do not agree with anything you say, i think you sound egotistical, self promoting and generally the only people who are very insecure about themselves and their abilities feel the desire to prove to everyone else how good they are.

I dont see what grounds you have to say fee's free is less of a quality service than someone who charges fees. You can be qualified 5 minutes and charge a client a fee - anyone can and some do - it reflects nothing on the quality of service that the client receives.

I personally would rather take on less cases and do a good job on them all despite being fee's free. The trick for the client is to find a broker who loves their job for the jobs sake, and not the amount of cash they can earn - - thats when good services comes into it. I'd avoid further sweeping generalisations about fee's vs fees free if I was you, unless you can come up with something of mroe substance to back up your points.

toonfish

I don't charge fees, and I'm bloody brilliant - the best of both worlds.

Just thought I'd get in on the act.

MortgageMamma

I'm brilliant as well. In fact I;m so brilliant that there is no word to describe how brilliant I am. Oh and no fee's, how brilliant is that.

Milks brilliant too.

AndyWallace

OP - If you negotiate your debts with information and breakdowns provided from the CCCS then you won't have an IVA, but an 'arrangement' to pay. The amount you pay each month will be annualised and taken from your annual salary before income multiples are calculated.

Switching from one adverse lender to another adverse lender could be difficult, but that depends on your exact circumstances - I do not want to know them by the way.

If you get on to Accord Mortgages and stick it out for 2 years they will put you back onto the prime product matrix if you stay with them.

HTH

Andy Wallace

Conrad

MortgageMamma, all I can say is you get what you pay for in this life.
The fee free brokers I know rely on selling protection policies in order to earn sufficient revenue.

Surely no one would deny that there is a considerable time cost involved selling protection - just doing the application THOROUGHLY and going through the factfind, IDD, KFI and RWL should take many hours unless corners are cut and thats on top of research, PLUS the regular training seminars required, PLUS chasing Doctors etc.

There is no way in the world such brokers also have time to see every lender representative on a regular basis as I do, something has to give somewhere, unless the broker is a super human individual who never has time to see his children. Reliance on commision alone further undermines the proposition.

I assert that in general a fees free broker is not as impartial (often tend to use a group of favoured lenders as have'nt the time to 'risk' trying lesser know brands) and will not be able to dedicate as much time meeting ALL lender reps as a fee charging broker does.

Of course there are always exceptions, this is just my general observations.

As a general rule I find those willing to work for less per hour generally produce worse outcomes, whether it be bathroom fitters, Surgeons or mortgage brokers.

Being a competent broker is so much more than being a rate monkey. Anyone can compare rates and fees, but thats only the beginning.

3 fees free brokers here couldnt help the following client, who I was able to assist:

62 yr old Woman, living in Husbands house. Wanting to put mortgage in her name. Husband hadnt paid existing mortgage for 6 months but still residing.
She had no deposit so wanted to buy without funds based on a discounted value. House has a flat roof and ex - local authority concrete.
She had 3 income streams ONE OF WHICH IS WORKING FOR HUSBAND.
She wanted a 20 yr term and PURE interest only.

There are other complex aspects to this case. I was able to place the case on prime rates but given the time commitment required of me I charged £399 up front which she was happy to pay.

Im no genius, I just recognise its better not to be a Jack Of all Trades relying on commision.

EVEN THE FSA HAVE LONG HELD THE VIEW THAT COMMISION IS THE LEAST IDEAL METHOD OF REMUNERATION.

Conrad

jamesd wrote:

Conrad, while you make a good point about fixed rates in general, Dibdob is contemplating an IVA that will significantly impair the availability of competitive rate mortgages when it comes to the time to remortgage at the end of the fixed term.

There are many long term competitive fixed rates he can consider, as long as the broker knows them all and doesnt rely on the usual shower (First Nat, GMAC, Mortgages plc, Kensington etc).

The IVA will impaire his credit but as he will be enjoying a fixed rate, it wont be an issue.
Even if he has an IVA rates can be competitive, and once 3 years have elapsed many lenders will ignore the IVA.

It makes no sense to put a rate sensitive borrower on a traker rate unless that is you can guarantee rates wont go up.
I remind you that global inflation pushed rates have been on the rise.

Obviously the fixed rate available right now will be dependant upon his credit history and other factors, but historic adverse credit can have a lot less impact that some might venture.