Equity release

7 posts Page 1 of 1

Post Reply

jordan22: Posts: 9; Joined: Mon Jun 16, 2008 9:17 pm; Location:

by jordan22 » Mon Sep 15, 2008 8:37 pm

If you have default notices and ccjs against your record,will you struggle to do a equity release?

MelanieGiles Industry Expert

Posts: 47612

Joined: Tue Jan 09, 2007 10:42 am

Location:

by MelanieGiles » Mon Sep 15, 2008 8:39 pm

Not necessarily, but the poorer your credit rating the more difficult it will be to find borrowing at a favourable interest rate.

Regards, Melanie Giles, Insolvency Practitioner

plasticdaft Forum Expert: Posts: 9562; Joined: Wed May 21, 2008 12:45 pm; Location: United Kingdom

by plasticdaft » Mon Sep 15, 2008 10:36 pm

MelanieGiles wrote:

Not necessarily, but the poorer your credit rating the more difficult it will be to find borrowing at a favourable interest rate.

Never mind a favourable rate,any rate will be hard to come by.

Talking of which Mel,could an Ip force you to accept a really unreasonable rate of remortgage to release equity??

Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.

Adam Davies: Posts: 14596; Joined: Thu Mar 29, 2007 12:21 pm; Location:

by Adam Davies » Mon Sep 15, 2008 10:45 pm

Hi
The ability of remortgaging is all down to affordability.
The recent protocol stated that the extra cost of the remortgage should cost no more than 50% of your disposible income[IVA payment]A higher rate will mean a higher payment so if this becomes unaffordable then you will not have to remortgage.
Regards

Andam Davies

MelanieGiles Industry Expert

Posts: 47612

Joined: Tue Jan 09, 2007 10:42 am

Location:

by MelanieGiles » Mon Sep 15, 2008 11:08 pm

IPs cannot force their clients to do anything that they don't want to - and as Andy says there is an affordability safetynet within this provision, which is really quite fair.

Regards, Melanie Giles, Insolvency Practitioner