equity release

[dry debt rot]

hi all
can you help with this i have an equity release in my iva in 4th year it says i need to raise 1000 pounds from the remortgage if i was to raise the cash from family would they accept this or do i need to remortgage?

[Adam Davies]

Hi
Is the 10k a figure that is set in stone in your chairmans report or an estimate ?
If it is a figure set in stone then yes a third party can lend it to you to save you from a remortgage.
Have a chat with your IP to confirm

[carlmcmullen]

A £1000 seems a little low for equity release, considering you would probally have fees of around £1,000 aswell to realease the equity.

I would expect that £1,000 is an estimate and your creditors are likely to have asked for a 4th year valuation to re-establish the level of equity and you would be excpected to arrange a mortgage at 85%LTV.

However if it is £1,000 then i would say re-mortgage is not really the best way to raise such a small amount and yes if family could help then that would normally be acceptable or could perhaps extend your IVA by a few months to cover this amount.

Perhaps have a quick chat with you IP

[carlmcmullen]

Just re-read your post do you mean £1,000 or £10,000 ?

[Soulgrowth]

I had this discussion a few days ago with Melanie ... in the 'old' IVAs the equity release tended to be set more at a figure rather than a percentage. My IP said at the time I could either raise this by re-mortgage or by some other means.

£1,000 or £10,000? Could make a big difference [:)]

Debbie

[maxdebt]

Let's presume its £10000. My proposal was also for a fixed amount in the 4th year(£6000) but it got modified at the meeting to the more usual 85% LTV. so that's that I guess. I presume dry debt rot you do not have the 85% LTV?

[Adam Davies]

Hi
I presumed that there was a typo and that it's 10k,can't imagine it would ever be 1k
Regards

[dry debt rot]

hi thanks for the quick replys i have hunted my iva letter out and it says = we propose to remortgage our property in the 5th year of the arrangement and introduce a lump sum of £1,125 for the benefit of our unsecured creditors. So my question was do you think if i just add this to the pot i wont have to remortgage?

[jpj]

I would argue that a remortgage would be uneconomical. mortgage application fees have risen quite a bit lately (you could well be paying an application fee of £900) and I doubt many mortgage brokers would be interested in organising a loan for such a small amount.
Best ask your IP for their view in the matter!

[Andrew Graveson]

I think the point here is about the sum owing rather than the remortgage.

Cannot imagine anyone would make you remortgage for the sake of it to raise a previously agreed sum that could come from other sources.

[carlmcmullen]

hi thanks for the quick replys i have hunted my iva letter out and it says = we propose to remortgage our property in the 5th year of the arrangement and introduce a lump sum of £1,125 for the benefit of our unsecured creditors. So my question was do you think if i just add this to the pot i wont have to remortgage?

I am sure that it will be acceptable to introduce funds from a thirdparty instead of a remortgage.

You may also need to check your Chairmans report to make sure creditors didnt modify it in any way.