How much in percentage terms is the remortgage

[cakjh]

How much in percentage terms is the remortgage usually required in the last year of an IVA?

[MelanieGiles]

Hi there and welcome to the forum

Usually this is based upon 85% of the value of your property during the final year.

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

[jpj]

Im remortgaging at present and its proving a total nightmare!! I organised a secured loan,but the max was 75% LTV, no lender would go higher.
They then refused my loan because my IVA had a charge over the property..i tried to explain that the point of the loan was to remove the IVA and their charge would take its place...they were having none of it!!
I have then tried a remortgage..just paid £300 for a mortgage valuation which the muppet surveyor valued at £75,000 under its true worth "cause thats what the internet said!" despit me having agent valuations ..UGHHHH
As I have said before, You can only release the value that you can remortgage for,and 85% doesnt always mean it will be 85%,as im now finding!!

[catullus]

This might be good news jpj.

Generally proposals require you to remortgage for the maximum amount possible, normally with a provision that it won't exceed 85% loan to value. If , in the current market, you cannot remortgage for an amount that will release equity in to the IVA (which wouldn't surprise me) then you will have fulfilled your commitment to try, and that could be the end of the matter.

It may be that the proposal has other provisions that cover this, such as paying an extra 12 months in lieu of remortgaging, but proposals written 3/4 years ago generally didn't have such a clause because the assumption was that mortgages would continue to be freely available.

The important thing is to have sufficient evidence to produce to the supervisor to demonstrtate that you have tried to remortgage (normally three applications) but that it just hasn't been possible.

[jpj]

Surely 3 mortgage applications with possible application fees, and 3 sets of valuations at £300 each is going to put most IVA ers into BR !!

Well if you want an outrageously poor valuer who will undervalue your property, I now know a man that can!!! te he

[catullus]

You might like to propose to your supervisor that the costs of the applications should come from IVA funds (unlikely) or should be deducted from the contributions that you make.

[jpj]

I think valuers etc are very jumpy now with the property market grinding to a halt...As you say, anyone with a year 4 clause soon is going to have to do a bit of shopping around!

[e.h]

What happens if you cannot get a remortgage in year 4?

Regards

Liz

[MelanieGiles]

So long as you have demonstrated all efforts to secure a mortgage, this will probably be deemed as full compliance under the terms of the IVA, but do check the fineprint to be sure.

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

[e.h]

Thank you Melanie for your prompt reply, as always.

Liz