Mortgages
A mortgage is a form of secured lending and is therefore not eligible to be included in an IVA which solely covers unsecured debt. There are 2 main types of mortgage available in the UK:
Interest Only mortgages are where you only pay the interest due on the loan. This is different from a Capital Repayment mortgage where some of the capital is paid off each month as well as the interest. Some form of savings plan such as an endowment is usually required with an Interest Only mortgage so that the capital can be paid off at the end of the term of the mortgage.
Changing from a capital and repayment mortgage to an interest only mortgage can be a way of reducing how much you pay each month on your mortgage.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.