IVA & Changing Mortgage

Harry_Hammer

Currently into our third year of an IVA and I am worried that the interest rates are likely to increase. Currently on a SVR mortage.
What are the chances of my existing mortgage company allowing me to move to a fixed rate?

Foxy-Stoat_3

I would only try your existing lender, but after you let them you are on an IVA they may not give you any options.

Also, if you have enough equity, you will be asked to remortgage in a couple of years so if you fix for longer than that, you may have to pay the redemption charges.

What is your lenders current SVR and what could you hope to get by fixing based on your current equity?

I don't think the rates are doing anything major anytime soon but if your mortgage goes up by say £100 a month if the rates did jump, then this will be dealt with at your annual review anyway so it shouldn't end up costing you anything.

Harry_Hammer

Thanks for the response and I think it is in my best interests for me to stay put.

cheers again

jonesk733

My husband and I are currently in our 3rd year of an IVA. Our mortgage comes to an end in about 3/4 years. We are on an interest only mortgage with Redstone mortgages. We do not have an endownment policy as we cashed it in years ago as it did not cover the amount needed to pay off the mortgage at the end. When we took out the mortgage we did it through a broker who initially put us on the intrest only option and said that they would subsequently change us to a repayment one. They never came back to us and we later found out that they had folded. It was not until the mortgage company got in touch with us stating that we had 5 years left on our mortgage but no endownment policy that we realised. They gave us options one of which was to remortgage with them. What would be the best thing to do try to change mortgage companies (bearing in mind the IVA) or stick with them? I have read some of the messages that people have written about Redstone mortgages, but personally we have had no problems and they have been very helpful if there have been any problems.

Foxy-Stoat_3

jonesk733 wrote: »

My husband and I are currently in our 3rd year of an IVA. Our mortgage comes to an end in about 3/4 years. We are on an interest only mortgage with Redstone mortgages. We do not have an endownment policy as we cashed it in years ago as it did not cover the amount needed to pay off the mortgage at the end. When we took out the mortgage we did it through a broker who initially put us on the intrest only option and said that they would subsequently change us to a repayment one. They never came back to us and we later found out that they had folded. It was not until the mortgage company got in touch with us stating that we had 5 years left on our mortgage but no endownment policy that we realised. They gave us options one of which was to remortgage with them. What would be the best thing to do try to change mortgage companies (bearing in mind the IVA) or stick with them? I have read some of the messages that people have written about Redstone mortgages, but personally we have had no problems and they have been very helpful if there have been any problems.

You should start your own thread, may get more answers.

Whats your LTV % ?

If your IVA ends in 2 years and you don't have enough equity or cannot get a remortgage releasing equity then you may have your IVA extended another year.

By the sounds of it, you will need to arrange a new repayment mortgage about the same time your IVA finishes, so you may struggle with a new lender but talk to your existing lender and see what the options are.