If you’re considering taking out an Individual Voluntary Agreement (IVA), you’ll need to be aware of the potential impact on your mortgage. Here’s what you need to know.
Your mortgage and an IVA
If you have a mortgage, your lender may well be included in your IVA. This means that they’ll be entitled to a share of any money you pay into the agreement.
What this means for you is that you’ll need to keep up with your mortgage payments during the life of your IVA. If you don’t, your lender could take action to repossess your home.
It’s worth bearing in mind that even if your mortgage lender isn’t included in your IVA, they may still be entitled to some of the money you pay into the agreement. This is because most mortgages include a ‘charge for payment’ clause, which means that the lender can claim any money you pay into an IVA.
What if I can’t keep up with my mortgage payments?
If you’re struggling to keep up with your mortgage payments, you should speak to your lender as soon as possible. They may be able to offer you some support, such as a payment holiday or a repayment plan.
If you’re unable to reach an agreement with your lender, you may be able to include your mortgage in your IVA. This means that your monthly payments would be reduced and spread over the life of the agreement.
It’s important to remember that if you include your mortgage in your IVA, you’ll still be responsible for paying any interest that accrues on the loan. This means that the overall amount you owe could increase, even though your monthly payments are reduced.
Speak to a professional
Taking out an IVA is a big decision and it’s not something you should do without taking advice from a qualified professional. They’ll be able to assess your individual circumstances and advise you on the best course of action.
Choosing the IVA Mortgage lenders
There are many different types of IVA mortgage lenders out there. You’ll need to find one that best suits your needs and financial situation. Here are a few things to keep in mind when looking for an IVA mortgage lender:
1. Make sure the lender is reputable and has a good track record. There are many unscrupulous lenders out there who will take advantage of people in financial difficulty. Do your research and make sure you’re dealing with a reputable, reliable lender.
2. Make sure the terms and conditions of the loan are fair and reasonable. Don’t be afraid to negotiate with the lender to get a better deal. Remember, you’re the one who’s going to be paying back the loan, so you need to make sure you can afford the repayments.
3. Be prepared to provide the lender with a lot of personal and financial information. The lender will need to know about your income, expenses, debts, assets, and anything else that may affect your ability to repay the loan. Be honest with the lender and provide all the information they request.
4. Make sure you understand all the terms and conditions of the loan before signing any paperwork. Don’t be afraid to ask questions if there’s something you don’t understand. The last thing you want is to sign a contract only to find out later that you can’t afford the repayments or that there are hidden fees or charges.
5. Shop around and compare different lenders before making a decision. There are many different IVA mortgage lenders out there, so it’s important to compare their rates, fees, and terms before deciding which one is right for you.
With these tips in mind, you should be able to find a reputable, reliable IVA mortgage lender that offers fair and reasonable terms. Don’t be afraid to negotiate with the lender to get a better deal, and make sure you understand all the terms and conditions of the loan before signing any paperwork. With a little bit of research, you should be able to find an IVA mortgage lender that’s right for you.