Interest only mortgage

Thrugelmir

stoddy2k01 wrote: »

I do have an Iva in force and i have a loan in force. But i do feel that this is irrelevant to my circumstances.

The lender may well feel that the IVA should come first. Ahead of rescheduling the mortgage. For reasons of it's choosing.

getmore4less

stoddy2k01 wrote: »

Thanks Scott.
If i have an outstanding debt of £62000 on my 15 yr term interest only mortgage. and i'm currently paying £248.00 on my interest only mortgage then i pay another £200 per month taking it to £450 say for the 15 yr term do you know how much i would have remaining at the end of my current mortgage. Only if i got the chance to switch it would be all cleared. But with overpayments i'm under the impression i would have a lot still remaining at the end of the term as it currently is.

http://www.whatsthecost.com/mortgage.aspx

£62000 interest only paying £248pm 4.8%

repayment over 15years £484pm

paying £450pm in 15 years you owe £8900


Don't change to repayment just pay £484 or more total per month if you can afford it(you say you can).


Overpayment or repayment the cost per month and end result is exactly the same.

silvercar

Check the terms of your IVA.

Generally there is a requirement to remortgage at or near the end of the IVA to release equity to pay back creditors. The last thing you want is to create equity in your property and then have to pay it back into your IVA - effectively you will be paying the capital repayment twice.

It may be better to save the monthly money elsewhere until your IVA is complete.

zuluwarrior31

Regarding silvercar's comment about repayment of capital, creditors would only ask for equity if it is more than £5000 (sole ownership) or £10000 if you own the property with a partner for example. It would be worth working up to that point and giving yourself a head start

silvercar

zuluwarrior31 wrote: »

Regarding silvercar's comment about repayment of capital, creditors would only ask for equity if it is more than £5000 (sole ownership) or £10000 if you own the property with a partner for example. It would be worth working up to that point and giving yourself a head start

It may already be over those amounts!

I thought the rules were you could be asked for anything beyond the first 15% of the equity. Anyway the point is that OP should look into this before making capital repayments.

stoddy2k01

Thanks all.
Are you saying i should save the £250 elsewhere until the Iva has ended then pay off what i save and then continue with the overpayment's. Just to say my house is still outstanding £62000 therefore i have no equity in the place therefore they cannot make me re-mortgage for the creditors i'd be 75 when it's paid for under the current terms.

stoddy2k01

Hi.
Is that strictly true about them making me remortgage to pay back creditors.

Why am i paying monthly into an Iva i thought that was to repay my creditors to a satisfactory effort. then i would be cleared and released from my creditors at the end of the arranged iva term.

silvercar

stoddy2k01 wrote: »

Hi.
Is that strictly true about them making me remortgage to pay back creditors.

Why am i paying monthly into an Iva i thought that was to repay my creditors to a satisfactory effort. then i would be cleared and released from my creditors at the end of the arranged iva term.

That is the general plan with IVAs. Set up for 5 years, 6 months before the end they look to see if you have any equity over 5k (Allowing you to keep the first 15%). If you do have equity and can remortgage then they expect you to. If you can't remortgage they will want you to extend your IVA by a year instead. This all should have been explained to you at the start.

So if there is any chance that you could be required to pay over some equity or extend your IVA by a year, you would be better of putting the money aside rather than reduce your mortgage.

http://www.debtadvicefoundation.org/questions/iva-remortgage

amnblog

As you can see the IVA is not 'irrelevant to your circumstances'

stoddy2k01

What do you mean the IVA is not irrelevant to my circumstances. The reason why these idiots will not let me change to a Re-payment mortgage is because from 2014 our pathetic government changed the rules of lending after the stupid bankers went crazy by throwing money here there and everywhere and getting this country in to serious debt. But they were quite happy to lend me the £62000 in 2004 on my own income and as a sole buyer on my own income.

So the IVA has no irrelevance at all. It's the these idiot bankers and government who screwed the mortgages up. And with yourself being a Morgage Advisor One would think you'd know that "If your up to date with Mortgage lending.!!