New to this.... IVA/MORTGAGE/PPI

Simone93

Hi

I currently been doing my parents finances as I have seen the effect its having (only just started to understand the past year to what extent this is) and I need some advice... I have been going through PPI claims ect (paperwork older than myself) and managed to claim back PPI on 8/10 loans, anything other is currently with the Ombudsman...my Dad is in IVA and has been for years which has a term time left of 24 months... the mortgage owed is £168,000 left and repayments are interest only with only 4 year term left.
Some of the PPI claims have gone to the IVA which is fine as I am guessing this helps credit rating? please tell me if I am wrong.

I have also had my dad take a credit card to bump up his credit rating, this was used for general living expenses and paid off in full each time (3x £700 per month payments then closed) so I assume this helps it also?

Anyway I am fine with the bank things ect but it is the mortgage I am worried about.. I see the mortgage interest rates are low at the moment but chances of re-mortgaging are low and I am desperate to get them off interest only, this is why I am trying to re-vamp the credit rating.. have I got this wrong and is there any advice someone could give me?


I have no financial experience what so ever and any advice will help.

Thank you

National_Debtline

Hi Simone and welcome to the forum.


This sounds like a veritable can of worms and I probably have as many questions for you as I do answers, but let's make a start!


Your father is in an IVA which still has two years to run. This is a legally binding agreement between him and his creditors, set up by a licensed insolvency practitioner (IP). Normally the terms of an IVA, unless explicitly stated to the contrary, will give the IP control over any claims for PPI refunds, regardless of their age and whether they relate to the debts included in the IVA. In other words, you should probably be leaving the pursuit of such claims to the IP. Now, if you have passed any refunds you have claimed on to the IP it's not such an issue, but if any of them have been put towards other things without the IP's consent then that may be a sticking point.


You refer to a credit card being taken out to help rebuild your father's credit rating. This is odd for a number of reasons:


- Credit card companies would not normally offer such credit to someone partway through an IVA;


- He would normally need the explicit permission of the IP to take out any further credit during the IVA;


- The idea of trying to rebuild one's credit rating during the IVA is normally a non-starter - the process needs to have completed before one can realistically think about rehabilitation.


I won't try to address the remortgaging issue just yet as it's important to clarify the above issues first.


I really think you would benefit from speaking to one of the free advice charities, as I think the level of detail required isn't always easy to convey on a forum like this.


Dennis
@natdebtline

Simone93

Hi

Thank you for your response it really helps.

I understand fully what you are saying and I will contact for advice as this would be very beneficial.