IVA and renewal mortgage

nrishiraj

I'm currently in a fixed term 5 year mortgate which will end in 2019. Cut a long story short, I may have to go via an IVA route as I've got over 20k+ of credit card debts.

Question...will it be difficult for me when it comes to renewal? Can the lender reject me? Bare in mind that I've never missed a repayment for my mortgate.

Thanks

adyj73

Unfortunately if you are in an IVA you will have it on your credit score so whilst you will revert to the mortgage lenders standard variable rate an application for a new fixed rate is a new credit application so would likely flag as computer says no. I had this issue myself. I did appeal and was accepted by a human once I outlined all the reasons but I was at the end of my IVA and I'm not sure they would be so friendly if you were at the start of the journey. If you have no defaults currently could you not switch before you took the IVA step?

I'm no expert so am sure more folks will be along shortly to give better advice over and above my own experience

nrishiraj

Can I speak to my lender (Halifax) and see if they can switch me to a lower fixed rate for another 5 years (I'm currently replaying 5.99%) before I enter IVA? Will they be a charge for this?

adyj73

You would need to discuss that with the Halifax. Some charge some don't depending very much on the products they have on offer at any one time

nrishiraj

adyj73 wrote: »

You would need to discuss that with the Halifax. Some charge some don't depending very much on the products they have on offer at any one time

I called Halifax and they told me there will be a penalty fee to opt out of my current term costing 2k !