IVA Mortgage questions

edited 30 November -1 at 1:00AM in IVA & DRO
6 replies 1K views
Wix2444Wix2444 Forumite
5 Posts
edited 30 November -1 at 1:00AM in IVA & DRO
Hi all,

I unfortunately developed a rather expensive habit(gambling) over the last 4 and half years and finally faced facts and gotten the necessary help and have started the process for an IVA.
I've got a question in regards to mortgages. My fixed rate ends in February next year with Nationwide. Me and my wife have decided it would be best to lock into a fixed rate while I'm in the IVA, we've been looking at 5years and 10years again with nationwide. We were looking at 10years as at least this will guarantee a stable payment for 10years and when it comes to remortgaging the help2buy equity in, my credit should hopefully have recovered. The only issue is the payments from 5 years to 10 is £60 per month

We were then thinking about the 5 year, but obviously this would end while still in the IVA, but near the end however we are worried about the fix rate ending and then being unable to lock in again or move to a tracker to avoid the high standard mortgage rate. Does anyone know if Nationwide is usually OK with fixing in while in an IVA?

Thanks

Replies

  • foxy-stoatfoxy-stoat Forumite
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    Some lenders don't even run a credit check when you do another fix. just call them up nearer the time and ask what customer retention deals are and fix for whatever term you feel is best.
  • Wix2444Wix2444 Forumite
    5 Posts
    foxy-stoat wrote: »
    Some lenders don't even run a credit check when you do another fix. just call them up nearer the time and ask what customer retention deals are and fix for whatever term you feel is best.
    Thanks, but that doesn't really fill me with lot of confidence, since my current payments will change from £594 to £790 in February if we were unable to get another fixed deal.
  • foxy-stoatfoxy-stoat Forumite
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    Why do you think that your existing lender would not offer you another fixed deal?

    Have you missed mortgage payments or is your LTV percentage high?
  • Wix2444Wix2444 Forumite
    5 Posts
    foxy-stoat wrote: »
    Why do you think that your existing lender would not offer you another fixed deal?

    Have you missed mortgage payments or is your LTV percentage high?

    No payments have been missed at all. In fact I haven't missed any payments on any of my debts over the last 9 years. I just thought as part of an IVA they wouldn't be willing to offer another fixed rate if they know I have an IVA.
  • foxy-stoatfoxy-stoat Forumite
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    Your not allowed to take on any more debt in an IVA but fixing your mortgage should be ok, as long as your salary hasn't changed and your not borrowing more money the lender may just put you on their fixed rate by a phone call with minimal fuss.

    If they ask about your current situation, ie have you been made insolvent or entered into repayment programme with creditors then you can't really bend the truth, but they only seem to refuse to offer you another fixed rate if you have been in arrears or if your letting the property out.
  • edited 17 April 2019 at 4:17PM
    Wix2444Wix2444 Forumite
    5 Posts
    edited 17 April 2019 at 4:17PM
    foxy-stoat wrote: »
    Your not allowed to take on any more debt in an IVA but fixing your mortgage should be ok, as long as your salary hasn't changed and your not borrowing more money the lender may just put you on their fixed rate by a phone call with minimal fuss.

    If they ask about your current situation, ie have you been made insolvent or entered into repayment programme with creditors then you can't really bend the truth, but they only seem to refuse to offer you another fixed rate if you have been in arrears or if your letting the property out.

    I called Nationwide and asked without providing any details. They basically backed up what you said, so thanks for that.

    When I spoke to Step Change they advised not all lenders do credit checks, but are informed anyway when entering an IVA. They said to speak to the lender and if worried to get it in writing from them. Not sure whether this is just time wasting, but will sit down with the wife and decide.

    Thanks Foxy-Stoat.
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