85% LTV

[attagirl]

Forgive me if I am a little rusty but this is my first post. I am in the throes of applying for an IVA jointly with my partner - we have £46k debt and £500pm x 60 contributions to propose, which will give a divi of >50p/£.
From reading other posts, it seems that we may have to re-mortgage in the fouth year to pay in extra monies, which I haven't got a problem with. However, this may only be up to 85% of the LTV.... can someone explain this to me. We are already currently over 90% LTV on our current mortgage (£150k to valuation £160k), and I don't see the property value increasing in 5 years, given the state of the market at the momment. Do these clauses mean that you must re-mortgage and pay in anything extra you can raise ???

[Beans on Toast]

Pretty sure an expert will answer this soon, your position sounds similar to ours, we have been told the creditors may ask us to pay in for 66 months due to the lack of equity in our property. It does however still state in our proposal for a mortgage review in month 54 - this seems to be the standard for an IVA.

[jpj]

Hi attagirl.
Unless property prices rise substantially you wont have to remortgage! As you say, you are currently on 90% LTV anyway. I really wouldnt worry too much about the clause.

[MelanieGiles]

If you are already at 90%, the propoery market will have to increase significantly, but if you are on a repayment mortgage every month you make a payment you will be reducing the loan to value, so this could also affect the position in five years time.

[attagirl]

Hi sorry for delay in replying. My mortgage was on repayment until December when it converted to interest only so I could manage my debt. BUT I haven't got an endowment policy. WOuld this affect an IVA not being in a position to reduce the mortgage?

[jpj]

No, Im in an IVA on an interest only mortgage. (most people on here are i think!)