4th Year Equity Release

[northumbrian69]

Now that the bottom has fallen out of the housing market and mortgages are becoming so much harder to obtain, what effect will this have on IVA equity release borrowing, I believe the maximum LTV is 85%, has this changed and are the sub prime lenders tightening up their lending the same as the high street banks[?][?]
Haven't seen much debate on this subject lately, I would appreciate an update from the experts.
THANKS [:D][:D]

[Viki.W]

From the last few weeks posts, I don't think it's changed but the experts might know more.

[kallis3]

Hi Northumbrian, I don't think the LTV has changed, at least I've not heard that it has.

I imagine that a lot of people will be like me and have their IVA extended if they can't remortgage.

Of course who knows what will happen in the next four to five years?

[size5]

LTV is a criteria that is set by the individual lender concerned, there is nothing set in stone, which is why previously you could get deals up to 125% If one lender will look at 85%, another may only consider 75% The trend is definitely downwards across the board though from what it was, say, a year or two ago.

Regards.

[MelanieGiles]

The maximum loan to value available for people in IVAs at the moment is 80%. This may change in the future, but at the moment lenders are very nervous to even consider supporting potential customers who have IVAs in place.

[northumbrian69]

What happens when the 4th year equity release 'kicks in' if lenders will not give you a remortgage[?][?]
Does the IP call a variation meeting, or does the IVA just run for it's full term of 60 months and then hopefully the IVA will be finalised.

The maximum loan to value available for people in IVAs at the moment is 80%. This may change in the future, but at the moment lenders are very nervous to even consider supporting potential customers who have IVAs in place.

[Viki.W]

Hey Northumbrian69, A meeting would be called and the IVA would possibly have to carry on for another year.[:(] X

[MelanieGiles]

It really depends upon the policy of your individual IP - but I would certainly be calling meetings to ascertain creditors wishes.