Hi I have an IVA with mccambridge duffy.Received annual report for 1st year and no increase thank god.On reading my arrangements again it states I will pay £400 for 60 months then a lump sum of £14.405 that being the proceeds from the remortgage of my property in the final year of the arrangement, however it then goes on to say further down that the amount of equity to be released will be based upon affordability from income and will leave me with at least 15% of the equity in the property,my concern is that whilst I am paying my mortgage for another 4 years the mortgage will reduce therefore the equity in the property may go up (depending on house prices). As the 14.405 has been agreed and signed will this be the maximum paid back?If so and the bank refuse to let me draw the equity surely im not expected to pay over a £1200 a month for another 12 months to honour the 14.405?Thanks,12 down 48 to do!
You are unlikely to be able to get a remortgage anyway so I don't think you have any worries on that score. If you do have to pay the extra year then it will be at your normal payment. You won't have to ay the full amount.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for the speedy responses.Is this usually the norm to pay another 12 months at the amount you are paying as potentially they will be losing £9000 if we cant remortgage.Thanks Shane
Hi. Yes, it is the norm for the 12 months in lieu of equity to be at the same rate as the usual repayments (as assessed at the end of the term). The Creditors realise what the world is like at the moment ( after all they are in the thick of most of it) and the 12 months is a compromise they are willing to make.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is the norm, as Foggy says. Hubby and I are supposed to releasse £28k which we obviously won't be able to do. If our payments continue at the same rate then we will pay back just over £7k in that last year.
The credtors are quite happy with it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
We had to do the 12 months extension... should have relesed £34k equity and ended up paying just under £11k in lieu, so a great result for us in the end.... originally gutted when told we were to extend, but after doing the calculations realised how lucky we were. The thought of re-mortgaging and adding a further £34k to the mortgage is just too unbearable to think about.
I have just seen this post Shane and if you still have any concerns or queries about the equity release please feel free to contact me directly or anyone at the office.
The equity situation may change in the next few years as may the mortgage market so while currently most IVAs are extended by twelve months it may be possible to remortgage in the future. However, irrespective of the level of equity, you are normally only expected to increase your mortgage payment by a maximum of 50% of your IVA payment so the property is not at risk.
Ultimately it is conjecture as to what the property prices will be and whether the mortgage markets have reopened in 3,4 or 5 years time but the main thing is that the property is not at risk which is most clients' main concern.
