F & F

[kah]

I have an interest only mortgage for £40,000 whch costs me £256 a month and a fixed loan against my property -currently to pay this off would cost £45000 and my payments are £670 a month. The loan has 5 years to run. I am near the end of year 2 of my IVA and my repayments are £1010 a month. My original debt was £100,500. My house is currently valued at £120,000.
I have been allowed to continue contributing to my work pension which will deliver a lump sum of £52000 on my retirement which pre IVA would have payed off the interest only mortgage.
I am now 58 so looking at retirement in 7 years time.
In my previous posts I have emphasised how unhappy I am at my inability to support my son through his university education. Is there any way on the figures above that I could at some point remortgage and go for a F $ F before the end of year 4? I know the overall cost might be greater - but maybe the monthly repayments would allow me to help my son.

[MelanieGiles]

Hi kah

Have you thought about consolidating your existing mortgage and secured loan into one? This may provide you with lower payments and you could then use the difference to support your son, but you need to be careful and you must not leave yourself exposed to an unaffordable mortgage into retirement.

I doubt whether you will be able to persuade creditors that a full and final settlement is viable, as a loan at 85% to the value of your property would only release £17k and your motnhly payments are quite high - also I assume that creditors have asked for a final year equity release.

Such a pity these education costs were not thought about at the time that you entered into the IVA.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[kah]

Thanks Melanie. They were thought about - included in the proposal but refused by the creditors meeting. Am I right in thinking that one of the addresses I've seen on the site would be a good strting point to examine remortgaging?
There is an equity release for 70% in year 4 of my proposal.
I didn't quite understand the TIX thing mentioned in another posting about the equity release not being more than 60% of your IVA payments. When I went into the IVA I'm sure the IP said that my change of circumstances - imminent retirement would be considered when looking at the equity release and future mortgage payments.

[mikebdomain]

Kah

It certainly would be worth running your figures past a mortgage broker - at least you will get some indication of your options.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[MelanieGiles]

The TIX thing does not affect you - this is a new protocol for current IVAs.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp