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Gordon
New Member

5 Posts

Posted - 07 Apr 2011 :  12:15:38  Show Profile  Reply with Quote
Hi everyone, I hope you can get something straight for me.



Reading a few IVA websites and forums there seem to be some lender names that come up as often rejecting IVA cases.



Two of them, MBNA and Northern Rock, are owed money by my wife and I so we're questionning whether it makes sense to go ahead with an IVA or whether we should look for another route.



Could you tell me if owing these companies money means that an IVA is doomed from the start? Also our mortgage is with Northern Rock. Would there be a problem for our mortgage if we did an IVA?

IVA Adviser
IVA Expert



726 Posts

Posted - 11 Apr 2011 :  10:11:10  Show Profile  Reply with Quote
Hi Gordon.



Please do not let owing money to either MBNA or Northern Rock stand in the way of you looking at the option of an IVA.



Much was written about the attitude of both companies to IVA's in the past, but much has changed over recent times. Both will accept IVA's that meet their criteria, and any decent IVA company will be able to tell you whether or not your wifes circumstances meet these acceptance criteria.



Don't worry about a Northern Rock mortgage either. So long as full mortgage repayments are continued the fact that an IVA has been applied to unsecured debt should not be an issue in this respect for your home.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
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Mike Sloper
IVA Expert



107 Posts

Posted - 13 Apr 2011 :  19:07:40  Show Profile  Reply with Quote
Hi Gordon

IVA Adviser is right, a lot has changed in the past couple of years and both lenders you mention regularly accept IVAs. If they reject, the new protocol means they should always tell you why. One thing worth mentioning is that Northern Rock often insist that you change from a repayment mortgage to interest-only if you have a mortgage as well as an unsecured loan with them.

I am a Insolvency Practitioner handling IVA cases.

Edited by - Mike Sloper on 13 Apr 2011 19:08:27
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Beverley Budsworth
IVA Expert



311 Posts

Posted - 14 Apr 2011 :  08:18:34  Show Profile  Reply with Quote
Hi Gordon,



Any practice you seek advice from should manage your expectations with regards to creditor attitudes. As Mike has mentioned above, lenders attitudes tend to vary and much has changed over the last few years.

I am an Insolvency Practitioner handling IVA cases. To contact me about starting a IVA please:   ???
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Gordon
New Member

5 Posts

Posted - 14 Apr 2011 :  13:58:19  Show Profile  Reply with Quote
Thank you for the answers which are reassuring. Why might Northern Rock want us to go onto an interest only mortgage though? I'd have though with the state that they are in that they would want us to be paying as much as possible!!
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Mike Sloper
IVA Expert



107 Posts

Posted - 14 Apr 2011 :  19:31:09  Show Profile  Reply with Quote
They usually ask for it if you have their 'Together Loan' product, which is a mortgage and unsecured loan. Decreasing your mortgage payment increases the amount you can pay into the IVA and that increase the amount they get for the unsecured loan, so I suppose that's why they like to insist on it.

I am a Insolvency Practitioner handling IVA cases.
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Gordon
New Member

5 Posts

Posted - 15 Apr 2011 :  12:18:39  Show Profile  Reply with Quote
That makes sense Mike. I knew they'd have something up their sleeve!
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Minerva
Regular Contributor

22 Posts

Posted - 16 Apr 2011 :  01:12:02  Show Profile  Reply with Quote
I don't think that Northern Rock do expect people to change from a repayment mortgage to an interest only mortgage in reality. They simply use that criteria for checking whether the debtor could repay all of their debts in full, excluding the together loan, over a period of 7 years before confirming acceptance. In reality, they only seem themselves to be allowing interest only periods for up to one year anyway.

I have worked in the insolvency profession for a number of years, but prefer to share my offerings to the forum anonymously
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