4th Year Equity Release

[northumbrian69]

Hello Again [:)][:)]

Can anyone explain exactly how 4th year equity release works [?][?]
My IVA was approved last week with one modification, 4th year equity release, I am unsure how this works, can any of the Forum experts answer the following questions:

1. How easy is it to get a remortgage when you are in an IVA [?]
2. What percentage of equity is normally released, I wouldn't have thought any mortgage provider would lend 100% of the equity [?]
3. What happens if you cannot arrange a remortgage because of age constraints, I will be 62 in year 4 [?]
4. Can you be forced to sell your house if you are unable to arrange a remortgage, even when you have adhered to the conditions of the IVA for the previous 4 years [?]
5. If the housing market were to rise dramatically, would you be expected to remortgage for higher monthly payments than stipulated by the IVA [?]

[Adam Davies]

Hi
This is an area that seems a bit grey to me.You should know exactly what you have to pay rather than waiting to the fourth year.
I,ll try and answer your questions for you
1]Fairly easy,as long as your IVA is conducted satasfactorily.
2]85% seems the ball park figure
3]If you are unable to raise a remortgage you can normally extend your IVA by a year to compensate for this
4]No,I,ve never heard of this
5]You would only be expected to remortgage to a figure that you could afford,this will never be more than your IVA payments at present,it will almost certainly be a lot less.
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Northumbrian

For more specific advice can you reproduce the exact wording of the modification, together with your property's current valuation and the amount outstanding on the mortgage. Is the current mortgage on repayment or interest only basis?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk