Can I take a small amount of equity out

[scotty_c]

Hi,

I have an IVA running now into its third year. My mortgage tie in is about to end and I want to re-mortgage.

Can I take a small amount of equity out of the property i.e £2,000 which will partly cover costs and give us a little extra money until I get a pay rise through?

Thanks for your help

[jpj]

Hi Scotty C , welcome to the forum...As far as Im aware, you cant remortgage for more money whilst in an IVA (only to give to your IVA supervisor)

[thebear29uk]

Hi Scotty

If you are into your third year your IVA may not include equity release as this seems to be a recent stipulation. If it doesn't I believe you can release equity but you will need the approval of your IP and any extra mortgage payments will need to be serviced from your existing allowance.

However if your IVA does have an equity release clause then you will not be able to remortgage for anything other than the existing amount.

Finally, if there is no equity clause would there be sufficient equity in the property to effect a full and final settlement of the IVA?

Regards

Dave

[Andrew Graveson]

Hello scotty c,
I think you may be allowed to cover your costs in your remortgage but it's unlikely you'd be allowed to raise additional funds over and above that. When you speak to a mortgage broker make sure they understand the dates of any equity release clause in your IVA so that the mortgage you select runs for an appropriate term.

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[MelanieGiles]

If there is a good reason for this, and it does not disturb your ability to honour your committment to the IVA, this may be possible, but not if you have a need to remortgage during the final year. Speak to your IP about this specifically, as he/she will have detailed knowledge of your case.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp