mortgage

memberme

Dear all,

I am on an interest free mortgage whuch has to be re-agreed yearly. I am in year 3 and soon I will have to apply for this to continue. My original mortgage was with Northern Rock and now is with NRAM who seperate completely from the former within the next week or so. I have heard that NRAM are not going to re-new interest free agreements which is surely going to undermine the majority of IVA's for pople with that company. i guess our payments will rise by £500. This would not be a problem after the IVA as we pay £1000 a month to that so we will have more than enough to pay for increased repayments then. However if the payments increase now it will fail, I guess. As IVA companies know we are renewing anually they ought to consider that possibility with the initial agreements as they can't add, what would be for me another 20K on to the end. Any views welcome. In adition even if NRAM they agreed this year they may well not next year which would be worse as I would then have completed another year, failed the IVA and have to go BR. Perhaps it's better to default now?

FoggyBrain_2

Hi. Best advice I can offer is to discuss this with your IP, sooner, rather than later and see what can be sorted out.

debtfree2016

Hello Memberne
My situation is similar, i have just extedned my IO morgtage for a further 6 months (from April) my review is in July. I had previously notified my IP of this and they said send in the paperwork in so they could have everything ready for the review with creditors. My repayments are £1100 and the change in repayments will be close to £400. I'm hoping they will accept this as going BR will give them nothing from the property.
I agree with Foggybrain, contact your IP and discuss futher and would advise emails and writing so that all is clear.

Good luck

Dave_Ham

Hi there,

I have had some clients renew their interest only with NRAM, although only after a fight with them.

Everything needs to be done in writing to them (do not trust them over the phone)

The terms you need to use are "treating customers fairly" and if you go on their website and use some of their own wording this will be the key to potential success.

The value and loan to value will also be critical to success.

As stated, don't default yet as the creditors will not want that either.

You are making good monthly IVA payments and I think they will recognise this.

Assuming you are in year 3 of IVA also, what is the current mortgage with NRAM and current property value?

memberme

I am in a 6 year IVA and currently half way through year3.
the vallue is 145K and the mortgage 133K.

My IP says he has not had any dificulty with NRAM yet although he has approached them directly in a couple of cases. I had a mortgage with the cash option. As my wife and I both have IVA's at 20p/£ any debt jointly owed pays 40p£ such as the cash sum to Northern Rock.

So far i have had no issue and as i pay £950/month into the IVA (between us) we can easily afford increased payments to our mortgage once the IVA has finished but not now. Currently we pay £560/month interest only mortgage.