I am in my 5th year of an IVA which should end Nov 2016. I am aware that as I have a mortgage at the end of this time I will be required to look at the equity in my home. I recently had it valued at £110,000and my remaining mortgage is £73,000. How much of this equity would I have to give to the creditors? I am also wondering if I would be better making them an offer of an early repayment of £5,200 (I pay £260.00 a month and would have 20 months left if I had to pay for 6 years instead of realising equity). I'm looking to move in with my partner once the IVA has ended so want my credit file to better than it is and sooner than next year if that makes sense?! Really don't know what is best for the future.
The iva will be on your file for six years regardless of whether you finish early or not.
Equity really depends on your wording in your proposal. Some take 85% of the available equity as a figure and some work out 85% ltv. It makes a difference going forward.
I agree with with Relieved.
Equity will be discussed in your proposal. Mine states 85% LTV so if yours is the same, 85% of £110,000 is £93,500 so i believe you would have equity. if you cant remortgage (most cant) you will likely need to pay another 12 months.
So if you offer the equivalent of 20 months payments now, or continue to pay monthly, your credit report will remain shot until the iva drops off (6 years from the start of your iva).
