How do they judge if i could afford a remortage?

[d_b]

I have spoken to a tv/internet advertised company who specialise in IVA's.
I went through the questions checklist. Later in the conversation I was told that I would expect to pay back £63 monthly then in the 4th year I would probably asked to free up equity in my home.
They could not tell me how much extra mortgege or the costs involved-it was a maybe or a maybe not. With the problems I have I need more concrete notification of what lies ahead. Is this normal. How do they judge if i could afford a remortage? (I can't even pay my normal mortage at present -I am paying interest only -so what chance do I have?
Incidentally my current mortgage is £89ooo & the house is worth about £135,000.... Help!!!
******************
My creditcard/overdraught/personal loan debts (for myself & my wife) are £42,300.
Without paying anything on the overdraughts our payments for just those debts are £929 monthly.
MONTHLY BILLS for food/house/petrol/council tax/ gas/electric/insurances/phone/pets =£850.
On top of this is Mortgage =£439 (but only because paying interest only-normally £780)
So £tootal outgoings of £2,148.00
Now coming in my monthly £1200 & my wife's £284.
Upto 2 months ago I was earning £35,000 per annum. But last year I had a heart attack. This Feb I had to have 6 stents fitted into my heart.I was told to take a less stressful job which I have 3 week ago. =No job stress but no money!!!
Ideas anyone? My wife & I have worked hard all our lives like many people. We (and me particularly) have made mistakes that have cost us dearly. WE have been paying back credit cards faithfully as always until this week. In fact I cant remember the last time we used our cards. Now I have an office job which pays me approx £20k less than I was earning in February. Please note - I would rather earn more money, have more responsibility & take the chance getting another better paid job so we can live & pay off our debts but at 51years & not as fit as I would like means the odds are slightly against me. So-ideas anyone??
I dont want bankruptcy. I dont want to sell my house.(By the way-its not a palace buts its what we have slaved for. A typical 3 bed semi.).
We dont go out & we had 4 days hols last year & a week in 2005. Before that a hol in 1999.There- I have bared my sole...

[Skippy]

Hi db and welcome to the forum. I would be wary if I were you, and I would speak to a couple of the companies who post on this forum as they will be able to give you advice free of charge. £63 per month sounds very low for an IVA, and to be honest a lot of the companies who advertise on TV are IVA factories who will try and push an IVA through whether or not you can afford it which means the IVA is almost guarenteed to fail. Please can you post details of what you owe and your income and outgoings so that one of the experts can advise you of your options via the forum.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[freelili]

I agree with skippy and have another question, what is the total unsecured debt as if it is less than your equity then you are not insolvent and an IVA would not be an option.

can you post more details?

LILY

I asked God for a solution and have to live with his reply.

[MelanieGiles]

Hi db and welcome to the forum

Which company did you contact, as it is ridiculous to propose an IVA based upon payments of £63 per month with a final year equity release. Is £63 a typing error?

How much do you currently owe to your creditors? And how much do you feel you could afford to repay each month?

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

[Sopty]

Hi,
I too contacted a company advertising on the TV, and they just did not seem to care, you could never speak to the same person and they just wanted to get the paperwork done and propose the IVA. I asked them a couple of question which where specific to me and they always answered " don’t worry, it will be fine we will deal with that" with out giving me a specific answer. I contacted a couple of companies on this website and they are a lot more professional and work with you on a one to one basis, my IVA is now being done be Thomas Charles / Wilson Phillips and I have a meeting this week. My advice, Listen to people like Melanie, and don’t get won over by a glossy TV advert. The people here want to help you and will deal with you as a person and not just another number.
Good luck in whatever you do


Cheers, Mark.

View my IVA story blog at: http://sopty.blogs.iva.co.uk

[d_b]

I have spoken to a tv/internet advertised company who specialise in IVA's.
I went through the questions checklist. Later in the conversation I was told that I would expect to pay back £63 monthly then in the 4th year I would probably asked to free up equity in my home.
They could not tell me how much extra mortgege or the costs involved-it was a maybe or a maybe not. With the problems I have I need more concrete notification of what lies ahead. Is this normal. How do they judge if i could afford a remortage? (I can't even pay my normal mortage at present -I am paying interest only -so what chance do I have?
Incidentally my current mortgage is £89ooo & the house is worth about £135,000.... Help!!!

[MelanieGiles]

Hi again

Your disposable income is really too low to fund an IVA based upon contributions alone - I calculate £195 per month. What is the position regarding your property? How much is it worth and what equity do you have now?

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

[d_b]

Hi db and welcome to the forum

Which company did you contact, as it is ridiculous to propose an IVA based upon payments of £63 per month with a final year equity release. Is £63 a typing error?

How much do you currently owe to your creditors? And how much do you feel you could afford to repay each month?

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

Yes-they said £63.They being Debt Free Direct.

[d_b]

Hi db and welcome to the forum. I would be wary if I were you, and I would speak to a couple of the companies who post on this forum as they will be able to give you advice free of charge. £63 per month sounds very low for an IVA, and to be honest a lot of the companies who advertise on TV are IVA factories who will try and push an IVA through whether or not you can afford it which means the IVA is almost guarenteed to fail. Please can you post details of what you owe and your income and outgoings so that one of the experts can advise you of your options via the forum.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

I have now posted my "sole" on my original help request Skippy.

[d_b]

I am sorry for "publicly feeling sorry for myself. I am sure there are others worse off. Apologies.

[MelanieGiles]

Sorry - didn't know you had already provided this information.

The problem you have is that you have more equity in the property than you owe to creditors. An IVA is therefore unlikely to work. I suggest that you look at an equity release now and try and offer a full and final reduced settlement to your creditors.

Do make sure that you can afford increased mortgage payments, however, otherwise a sale of the property might be more sensible.

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

[d_b]

Hi again

Your disposable income is really too low to fund an IVA based upon contributions alone - I calculate £195 per month. What is the position regarding your property? How much is it worth and what equity do you have now?

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

£135,000 seems to be the market price on our estate.We have mortgage commitments of £89,000.

[aguise]

db no apologies , most of us have felt like at some point, you will get help and support here and I am sure if you read the other posts you will see solutions found for so many differing situations. Keep posting

All the very best

Ang

[d_b]

Sorry - didn't know you had already provided this information.

The problem you have is that you have more equity in the property than you owe to creditors. An IVA is therefore unlikely to work. I suggest that you look at an equity release now and try and offer a full and final reduced settlement to your creditors.

Do make sure that you can afford increased mortgage payments, however, otherwise a sale of the property might be more sensible.

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

Thank you for the feedback. How do I "go about" offering a full & final settlement to my creditors & also arranging equity release to cover the debt?

[MelanieGiles]

For equity release you need to refer to a mortgage broker. I can recommend Tony Parsons who regularly posts on the forum as Welshboy. Let him see how much you can raise initially and then post again for further advice when that is known. Once you know how much might be available to you, and importantly have confirmed that you can afford to pay increased mortgage payments, you can set a plan of action for offering a settlement to creditors.

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