Hello, wonder if anyone can advise on what our options are now ?

[Desperado 77]

Hello, wonder if anyone can advise?
My husband is in year 4 of an iva. We had a review in July and it ws agreed he should continue to pay a monthly amount of £264 for the next year. Then in August we received a letter confirming this and also to say we should start the ball rolling on trying to remortgage our house to raise the amount of £17,300 in lieu of equity on our house. We have a very good mortgage and really want to avoid changing to another mortgage. As part of our current mortgage agreement we can write a cheque up to approx £14k . . this will increase in coming months. Can anyone advise what our options are now? Should we remortgage using our current mortgage or go elsewhere, should we offer an early settlement now ( maybe for less?) Last November we offered an early settlement amount of £6k but it was declined and we were told the minimum that would be accepted would be the £17,300 as that was the amount agreed in the case of equity or bankruptcy. We really want this over with . .any help or advice would be greatly appreciated.

[Pandy]

It is unlikely you would get another mortgage offer, quite a few people have just had an extra year added on in Lieu of equity, although there is one firm (I think it is DFD but I am not sure) who is trying to help by finding secured loans for people to use to fulfill the equity section.
You do need to go through the process of trying to get a mortgage and let your IP see the rejection letters, so they can see you have tried.
If you add the amount onto your mortgage by writing a cheque doesn't that increase your mortgage repayment, I believe some have a clause that any increase should only be up to 50% of your current IVA payment. Although with not having a mortgage (I am in rented accommodation) I am not sure, there will be someone with a lot more knowledge along to give more info.

[Adam Davies]

Hi

I would either try and remortgage, unlikley that you will be able to, and then hope for the 12 month extension, or offer the maximum amount that you can by way of agreed further borrowing that you already have on your mortgage account, this way you mortgage will stay as it is although payments will increase.

Regards

[Tina Shortland]

Hi Desperado - as the others have said you will need to show evidence of trying to remortgage, and yes, do check if you have the 50% cap increase on your mortgage payment built into your proposal. Remortgaging would be to release equity which is what the £14k is you say you have access to now anyway. Nearly a year on the creditor may accept this instead of the calculated £17,300 as the alternative is for them to wait a further 12 months with extended payments which would only give them an extra approx. £3200. The £14k may not be taken as an early settlement though - you may be expected to pay the 60 months in full and the £14k be the equity release figure you can achieve.

Let us know how you get on as there are many posters interested in others experiences of what happens towards the end of an IVA, especially around equity release.