equity release

[kellym]

Been a while since I was on here and wow its grown and is still as good as ever. Well I will start my husband and I were looking to go down a remortgage route to make an iva offer but due to the mortgage situation it now looks like this is not going to happen. We are now looking to do a straight iva offer that would include a remortgage at the end. My questions start here, would the remortgage be in year 4 or 5? also as my husband is much older than me we were ok to remortgage for a 30 year term now but at the end of 4/5 years it may be too high a payment to do it as we may not get a 30yr term. What would happen then would an iva go on longer or would we just be made to remortgage to what we could afford? or both?

Another question is on petrol we both work local and dont use too much petrol but wondered if this is sort of a rough allowence per person set to guidlines or if they see you work local and allow less. I ask this due to relatives living miles away and we visit quite a lot and would not want to be left with no petrol money?

Hope this is clear,thanks for any haelp im sure I will be round with many more questions.

Kelly

[MelanieGiles]

Hi again Kelly

Your IVA will need to be based upon a re-mortgage during the final year of the IVA, and the new payments will not be allowed to exceed 50% of your current monthly IVA instalment. So for example your IVA payments are £400 per month, your new mortgage could not cost more than £200 per month at which time your IVA payments would cease and the IVA would be drawn to a successful conclusion. So affordability drives the amount which needs to be raised as well as loan to value.

With regard to your petrol expenditure, you need to work out exactly what you spend on work related travel and social travel and let your IP know if any of the figures you have already declared need to be amended.

[kellym]

Hi Melanie as always a super quick response. I think I have the basics of an iva then an anoying question pops up in my mind. Some great information there thanks. I am doing a more up to date I&E and this will help loads im sure I will be on here a lot over the next few months. Im quite excited now we have an idea what we are doing about our debt.

[MelanieGiles]

And I am sure that given the recent difficulties you have encountered with the property, your IP will ensure that your case is moved at full speed ahead from now on!!!

[kellym]

Im sure they will they have been really good so far. Thanks Melanie[:D]