Hi, I’d attempted to commit suicide due to being scammed by £70k. I’d recovered and not entertaining this thought anymore. It was really heard to address my mental problem and this situation did take a huge toll on my health eating 2 meals in a week and sleeping 2 hours for almost a month. I found this forum very helpful so I just want some…[Read more]
Are you in an IVA or have ever been in an IVA and are now looking for a mortgage?
We’re completely independent which means we are whole of market with no preference to which lenders we source your mortgage from. We have access to an exclusive range of products from specialist lenders some of which you and other Mortgage Brokers may not be aware of.
Our staff are highly experienced and specialise in IVA mortgages, we’ve also been around for a long time during which we’ve helped thousands of people with IVA mortgages.
A. Yes, you can enter a new tenancy, but it would be better if the new rent is similar to your old rent, otherwise your IVA payment might need to be revised. Your credit record will be shot, so you will fail a credit check made by letting agents, so be upfront and discuss this before they make a check (and probably charge you for it). Some agents will overlook the bad score with the use of higher deposits / advance rent (not easy in an IVA) or, more often, a guarantor. Another option is to use a private landlord as they do not routinely credit check but will rely on references from employer and / or current landlord.
A. Yes, this is possible. There are two main ways to do this:
A settlement – this requires you to pay the remaining balance of the original debt, plus fees and possible statutory interest.
Or, more commonly:
A Full and Final Offer – this is a lump sum payment based on the remaining payments in your agreement, plus an extra 12 if equity is to be addressed. This lump sum can often be rounded down a little to reflect time and admin costs saved by early closure – but do bear in mind the ‘hit’ creditors are already taking.
A. Statutory interest is calculated at 8% p/a, simple interest, on the daily reducing balance of the debt and is included in many arrangements in the event that it is possible to pay the debt in full, often if you get a windfall – inheritance or lottery win sort of thing. Some arrangements exclude this from the outset, so it is worth checking your paperwork. It is also possible creditors will agree to remove this requirement if asked.
A. No, you cannot change your IP yourself, but your IP can be changed for you if, for instance he or she retires or stops practising or the firm sells its existing arrangements to another firm – if this happens you will be advised of your new supervisor, but you have no say or choice in the matter. Your arrangement will be otherwise unchanged and will run as it did before.
A. On rare occasions a former supervisor will have no interest in the refund and allow you to keep it. But, more usually, they will want it paid to the IP for distribution to your former creditors. Until last year (2021) IVA arrangements formed a ‘trust’ which, unless specifically quashed, existed even after the IVA was formally completed and it is under that trust that PPI refunds are dealt with. They are due to the IVA because they existed during the IVA, even if not known about. In 2021 a new ‘IVA Protocol’ was published which, as we understand it, automatically severs this ‘trust’ on completion of the arrangement, but, no doubt, IPs will take other steps to ensure PPI and the like get captured … time will tell.
A. Not usually! When you are made redundant you are allowed to keep the equivalent of 6 months’ pay (at currently agreed rates) with which to live and continue paying the IVA. Any compensation over this amount has to be paid into the IVA. If you get new employment before the 6 months is up any ‘unused’ salary you were allowed to keep has to go back to the IVA.
A. Assuming you have the usual clauses you are allowed credit up to £500 without permission from your IP (although we feel it is always better to run it by them anyway). That is in total, not per loan, and many of us eat into it with monthly paid car insurance alone! Remember though, you would fail a credit check anyway. It is possible your IP would agree a payment break for a month or two so you could pay cash for a replacement. Any missed months would be added back on at the end of the IVA. Do not be tempted to miss payments without clearing it with your IP first, though, as it could lead to the IVA being failed, putting you back to square one with creditors.
A. If your income has increased, your IVA payment will be increased by 50% of the net pay rise. However, if you would prefer to deal with your debt by way of a DMP now, you will need to ask your IP to fail the arrangement. This would then allow creditors to add back lost interest, so your debt could increase somewhat, and pursue you for collection. There is no guarantee they will co-operate with a DMP.
A. No. The new owners of the loan are bound by the IVA exactly the same way as the previous owners. Some might ask you for payment, not realising the loan is protected in an IVA. They usually back down when informed of the situation.
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