I have 12 months remaining and a shortfall. The iva company has said that I must remortgage my property. My rate is low, doing this will increase my interest and put the future payments, security of the house in jeapordy should we have a rate rise. Can this be argued against as not in the best interest for self and children?
Did you have an equity release clause in your proposal? Does your house have any equity? If not, then you should put your concerns to your IP.
You could always offer to pay an extra year into your IVA to make up some of this shortfall, and this might mean that your creditors would be happy not to make you remortgage.
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You might have to bite the bullet and go with a more expensive mortgage - surely the combination of a new mortgage and completeing the IVA will leave you better off ? Or is it you have no equity in the house to remortgage ?
My own IVA states that if I cant remortgage at the end of the IVA or have no equity - then my creditors will accepts another 6 months IVA payments in lieu.
Best to discuss with your IP. If you have a fixed rate deal, there may be a redemption penalty and if this hasn't been taken into consideration in drafting - which it should - you could have a good argument for just extending the term either at IPs discretion or by creditor agreement.
Can I also just echo Jan's point - if there is a shortfall, ie no equity, why do you need to re-mortgage? Is it possibly because of value at the outset with no provision for a negative equity situation at this point maybe?
Kind regards,
Angela Rosler
Insolvency Manager
Helping people with their debt problems for nearly 10 years.
Contact me directly for free, impartial, confidential help and guidance.
