equity to repay the pence in the pound agreed

[lucie]

We are currently in an IVA which started 11/06, we are finding things tight and are considering selling our house to use equity to repay the pence in the £ agreed. I believe we could get £35k to £40k after repaying the mortgage and 2nd charge. we have 51 @ £349 to repay plus a final payment agreed based on equity of £12k, hence £30k. What would the creditors be likely to accept given the early repayment as we would obviously like to keep a bit as a start for a deposit on a new house at some stage in the future - also if this was possible how long before we can get a reasonable credit profile to get high street mortgages. Thanks

[MelanieGiles]

Hi lucie and welcome to the forum

I think that you may be able to negotiate a relocation allowance with your IP - to cover the removal costs and perhaps a six months rental deposit, but it is unlikely that they will agree to allow you sufficient for a house deposit.

If your IP and creditors did agree to leave you with a 10% to 15% deposit fund on top of that, you would probably get high street rates again one year after your IVA had concluded, but I would take specific advice from a mortgage broker on that point to be on the safe side.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk