Hi,
My husband and I are just 2.6 months into a potential 5 year IVA with W3 debt solutions. We pay £370 per month.
When we started we paid £225 per month for 60 months, subject to review (wages increase have caused inrease). In addition, equity in our property that was estimated a t£30.493 then is to be realised at year 4 of the IVA(ie. make us remortgage).
Cost of the IVA is £4113 (nominees fee). Supervisors fees are £75 plus VAT per month.
Our mortgage is with Northern Rock. The secured amount is £107,100.00. We also have an unsecured loan of £30,000 that was not included in the IVA by Supervisors choice/advice.
Our house is roughly worth £120,000 (We bought it at £119k using some of the unsecured loan amount).
The IVA covers debts of £33436.17.
Now I am concerned for many reasons! Alot has changed since equity valuation! Our fixed rate of 5.99% will change to variable rate of 4.79% on 1 June 2011 Only just discovered it is less than our fixed rate!). The potential remortgage point of IVA is September 2011. Now I know variable rate is cheaper I am slightly relieved but I wonder where we stand. Surely no other mortgage company will take us on in our dire situation and if they did surely we would be paying more? Also will IVA make us remortgage whatever the cost? As there is next to no equity will they release us from IVA as it is clear they won't get all their money back?
If I was to be forced into remortgage I would love to move to bigger house but am i living in dreamworld to think that is an option? I'm sure NR have said they would not transfer mortgage.
Any advice would be appreciated