Who is placing this mortgage ? Are you dealing with Select (who sometimes work for CF, I believe). If you are - speak to them -- they are far more aproachable than CF and deal fairly, within the agreed IVA terms.
I asked about the valuation to see if the release clause should have been triggered in the first place --- but, with your outstanding mortgage, it is obvious that it would. So, in this case, the valuation won't help us -- the clause has been well and truly triggered. I assume 11 years takes you up to state retirement age ( another of the usual limitations).
On the face of it you have to accept the remortgage, which, due to your current situation, will be at a high rate of interest. The usual course is to re-finance this at a better rate once your credit rating has recovered.
I would still question the amount that they are asking for, which seems over the top to me ( But CF are probably one of the most fee grabbing firms out there !). Ask for a detailed breakdown of their calculations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014