We've got an IP

kes0904

Hi Everyone,

Well our wait is nearly over- after filling for BR on the 14th April- and being told we would more than likely be passed over to an IP due to our equity in our home- we have finally had the letters to say who our IP is and they now have all of our files.

It's all been a bit surreal- as it feels we've been in limbo for so many weeks, and now I'm starting to feel the nerves again- as not sure how we'll be looked after!

I guess they will want us to do another SOA, so they can set up an IPA for any surplus

Mentally preparing myself for everything to change now- the car will go, the house will be sold (although I don't think it will be very quickly).
Just hope we don't get someone who wants to take us for every penny (well within reason anyway!).

We've managed to keep saving towards our rent for when we have to move- as we've not been paying the mortgage or the car finance for the last 3 months. I assume they won't be able to take this from us as it's going to be needed to pay 6 months of rent when it's time to go from here?

IF

Hi kes, glad everything is finally sorting itself out. My advice is to save cash as opposed to having it in the bank as this may be taken.....just bumping for any other replies for you.


Best wishes
If...x

kes0904

Thank you!
So they woudn't question it being taken out of the account? I know they don't necessarily study the bank accounts, but if they do- I suppose it's not like we don't have a valid reason for saving the cash! So is it more vunerable if left in the account?

We've managed to save about £4000 so far. as it has been 4 months of not paying £750 on our mortgage, and around three months of not paying £289 a month on my car (which i'm sure will be taken soon as they'll want this money as surplus)
We'll need about £6000 at least to pay for 6 months rent, deposit and useless credit checks! Plus a further £1500 for getting me a car for work- so all the extra we can put by will be used to make sure life can still go on as normal

silvercar

Are you expecting to be repossessed? Considering handing the keys back? Some lenders work quicker than others.

kes0904

No - just getting ready for when things get set in motion by the IP to sell this place, or if sooner- the mortgage company start proceedings to get us out.
Most likely we will hand back the keys, as we will move out before being pushed out as it were!
We have approx £30k equity in our house we think- so I think they will probably want to snap this up fairly soon?

kepar

If you haven't got anywhere to rent yet , how do you know you will need 6 months in advance?

I expect the OR is looking at your savings and thinking I could have some of that , if not all.

kes0904

We were told by the OR to start putting the money aside for renting instead of paying the mortgage, and things would take a while to go through so it would give us a better chance to rent. Not sure how this will be viewed by the IP now we've been passed on.
The OR didn't set up an IPA for us, they said they would leave it until things had been worked out as to whether we would get an IP.

I know from ready posts on here for the last 4 months- that it is highly unlikely we will just be accepted as a couple who are BR, and what is the point in wasting money on credit checks that will fail anyway.

I also felt that surely it would give us a better chance to rent- every house that goes up around our local area gets snapped up so quickly, and without being able to pay in advance- I can't imagine they will see us as a priority on a waiting list for somewhere!

Other than the money set aside from not paying the mortgage and car, we've been living simple means with two young kids.

I will just have to accept it if they decide to take it I suppose!

missyp123

you need to see how much you are allowed to spend on a car, they may look at this as an assest. I know £1500 does'nt sound like allot for a car but i beleive they look at any asset over £500.

I would also agree with above post take the cash out the bank. You may not need all 6 monthS in advance if you find an understanding LL.

Also dont forget to price up your costs for a moving van etc.

kes0904

We were told by the OR that if we wished to replace our car that will need to go back to the finance company, we were able to purchase another one- up to the value of £1500

Feeling rather scared as to what is the right thing to do now with the money!!! It has built up for two reasons-
A- because the OR said to use it for getting ready to rent, instead of paying for the mortgage/car
B- because we've not been told to do anything else with it so far!!

Don't want to get in to trouble for drawing it out and I don't want to lose it either!

We have family surrounding us who know nothing about our BR, so I suppose I just want to make sure everything runs as smoothly as it can. Just can't face the thought of dealing with lots more stress AND having them find out what's going on because it suddenly goes T**S up! I just don't feel mentally prepared for them to know anything

What will be, will be!

kepar

Can I ask how much are you planning to spend on rent every month, because it looks as though you are planning to pay £1000. Is this the average rent for the area you live? You cannot just simply choose something, it will have to be within the guidelines or you could end up moving again.
Also as you have saved up this money , you will have a lot of excess for the first 6 months, which the IP will gladly take from you.

kes0904

I know we have limits- I'm not thinking that we can live in the lap of luxury!
We were told by the OR that it would be seen as acceptable for us to pay up to around £750 per month for a home for 4 of us- 6 months of rent at this rate- along with deposit - which usual is around the £1000 mark, and credit search costs, moving costs- and we're talking best part of £6000
I totally appreciate that we will have excess the other side of renting if we pay up front- so they will get the surplus one way or another
I like to think I'm pretty clued up - from asking lots of questions with the OR about the rent and about the car- but I am just anxious to know how things will work with the IP
Will just wait and see- I won't post anymore on this, as starting to feel uncomfortable now and more concerned about the situation than when I started asking! I appreciate we are all finding our feet with this- but I'm not totally naive to think that I can spend a fortune on rent, and won't pay surplus back one way or another
I have just been trying to make things a little easier for us, in the middle of a stressful time- if it will need to be a tougher journey, then so be it