post iva

chez2802

hi we finished our iva in may 2011,whilst on the iva for 12 months we paid into a debt management firm then we put on an iva in n2006.We were told we had to release the remaining equity we had in the property in 2007 or we'd loose the house,so they arranged an interest only mortgage payments were £687 PER MONTH our repayment mortgage was only £449,but we had 2 young children and panicked,then a month after the mortgage was arranged we told we had to pay an additional £1200,with which my mum had to take out a bank loan to help us.
Since finishing the iva we can't get a repayment mortgage and to be honest it has financially ruined us,ive had a stroke in 2015 due to stress and my husband had a stroke 2010 due to stress,on top of that i had ppi due to me for £6780 with which i have been told by rbs it will go back to the insolvency practioner due to the green bill.
I feel we were badly mis informed by the company we went with we were told going bankcrupt would'nt be in our best interest they have made £1000's of pounds from us as well as ppi they claimed back for us in 2013,i just need some advice re mortgage and getting back on the property ladder we have paid our bill's on time ever since and are rebuilding our credit,i can't work at the moment but my husband works full time,also could i complain and do i have a case against the insolvency company.

PrettyKittyKat

I am guessing you mean that you paid into a DMP for 12 months before deciding to enter an IVA in 2006.

How much equity did you release? Presumably your mortgage payments went up because you released equity, not due to being on an interest only mortgage?

Who arranged the new mortgage payments? An IP should not have been liaising with your mortgage company.

What reasons are you being given for not being allowed a repayment mortgage?

How much did you pay into your IVA in total including the PPI refunds and how much debt did you owe in the IVA?

chez2802

hi the ip organised the interest only mortgage we paid back 25% of the debt and released what little equity we had.the repayment mortgage we have been told we can't have because of the iva when the iva completed in may 2011 we got together an additional £1000 as a final payment.

chez2802

also the mortgage payments went up because we only had £1800 in equity but we were on a repayment interest rate was 4.49 to the interest only which was 8.63 we were told ifwe didn't do this we would loose the home,also yes we were on a debt management for 12 month before the iva as we were told we didn't qualify for an iva.

sourcrates

You should raise a complaint using your IPs internal complaints process.

If your still not happy, escalate to the insolvency service :

https://www.gov.uk/complain-about-insolvency-practitioner

PrettyKittyKat

The IVA will have been removed from your credit file 6 years from the start date, so if you started in 2006 then it should have been removed in 2013. Have you checked your credit file to make sure that all debts included and references to the IVA has been removed?

if they haven't - contact the creditors with a copy of your completion certificate and get it updated asap.

If it has, how do the mortgage company know about your IVA when it is no longer showing?

I am confused as to how the mortgage moving from a repayment mortgage to an interest only one, when only £1800 was released, caused the interest rate to go up? I thought the purpose of interest only mortgages was to reduce the monthly cost? What did the IP say to explain this at the time? Certainly that seems silly to do, when you only released £1800, as if you had just kept the repayment you could have paid the £238 saving into the IVA and you would have paid the £1800 to them in less than 8 months! And then been in a better position financially post IVA. That could be a point for a complaint.