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#24798
Over the past week or so I have been speaking to a number of people who are in IVAs which may now be at risk of failure because of a change of policy at Northern Rock. It seems that a large number of people started paying into IVAs on the basis that their mortgage with Northern Rock was changed to an "Interest Only" product. This brought down the monthly mortgage payment and made the IVA payments affordable.

Now it seems Northern Rock have changed their policy on Interest only mortgages and are requiring their clients to move back to full repayment mortgages. The associated increase in mortgage payments means that they can no longer afford their IVA.

If you find yourself in this situation you must speak to your IP as soon as possible. You may be able to vary your IVA allowing you to make reduced payments. However where this is not possible your IVA may well be at risk of failure. If there is equity in your property this may then mean you could face bankruptcy.

If you are in an IVA and Northern Rock has recently contacted you to say that they are putting you back on a repayment mortgage and you are concerned about being able to make your IVA payments, please speak to your IP or contact one of the experts here at BeatMyDebt.com who will be happy to advise you.
#27030
Important update to this post.....

If when you started your IVA you had a Northern Rock together loan Northern Rock is likely to be one of the major creditors in your IVA. It is also possible that the reason they agreed to allow you to change onto your interest only deal was to enable your IVA to be implemented. Given this it is highly likely that your IP can speak to Northern Rock and suggest that either they keep your mortgage on interest only to allow you to honour your IVA commitments or that they agree a variation of your IVA to allow the contributions you have already made to be sufficient to satisfy the arrangement. Your IP should not allow them to have their cake and eat it.
#27040
Some possible good news for people in this position at least James....