if we do not get a remortgage

[molly16]

We are approaching our 4th year in our iva and i am increasingly worried that we will not get a remortgage to release our equity in our iva due to the credit crunch my equity release is a substantial amount and my concerns are that if we do not get a remortgage where will i stand with creditors..

[Moneystinks]

Do you m ean IS a substantial amount or IS NOT a substantial amount? Sorry a bit confused.

[indebtforever]

if you have any queries at all just pick the phone up and speak to the ip.

[Viki.W]

Hey Molly, I think if it is impossible for you to remortgage then your IVA will probably carry on for a further year. Your IP will advise you on this, the way things are going, lots of people are going to be in the same boat with their IVAs. Viki X

[indebtforever]

If you cannot get a remortgage offer at that time, but equity in the property has risen, then creditors may instead agree that the IVA continues for at most one extra year in lieu of release of equity from the property. They are only likely to agree to this though if the amount of equity release being forgone is similar to what one year’s extra IVA payments would amount to.

[kallis3]

Our fourth year clause states that if we cannot remortgage, our IVA continues for another year. As I am in my mid fifties now, and hubbie is over 60 and we have just started ours, I don't think we will get one, so we are both resigned to having it go on for a further twelve months

[molly16]

hi ,
thanks for your replies . our problem is we had large amount of debt, but we do have equity in the property. our creditors are going for 40 - 50 k in the equity release. we currently pay 539 a month. so our worry is if we cant remortgage due to the credit crunch which is not our fault, there is no way our iva will continue for an extra for around £6k when the creditors want 50k. we had massive debt , and looking back god knows he we accrued it all , but these companies just keep upping your credit card limits .... have another card !!!our creditors only aggreed to the iva for 100% equity release in the 4 th year. we started paying our iva 2005.

[olympic_torch]

kallis3
I think we will be in the same position.
I will be 53 in our 4th year, it is unlikely i could obtain a re-mortgage, but, even if i could, based on current figures, i couldn't afford the monthly repayments anyway, i would be in a worse financial state than pre iva.

[kallis3]

OT, it does sometimes pay to be approaching the golden years! I really do not want to be saddled with more money on my mortgage at my time of life.

I haven't a clue how much equity we are expected to release.

Molly, I am surprised that you have 100% for your remortgage. I thought most of them were 85% LTV?

Also, with ours, if we could get one, if the extra money is going to cost us more than 50% of our IVA payments (currently £615 between the two of us) then we cannot do it.

[olympic_torch]

kallis3, molly16.
Never thought it would be an advantage to be an old f@rt.
If our equity release were going through today, we would be looking at 85% LTV, which, based on my current equity,would increase my mortgage payment by £400 pounds a month, simply impossible for me at the moment, returning approx 30k to creditors.
My iva payments would return £2640 for an extra 12 months, so i would come nowhere near the equity figure.

[kallis3]

Me neither. Our final twelve months would be about £7,000 at todays rates - nowhere near what we would be expected to release. I do know that in our proposal it was to be £14,000 each. Obviously with paying almost 5 years mortgage + secured loan before then we should (credit crunch notwithstanding) have quite a bit of equity. Really don't want to go down that route if I can help it!

[olympic_torch]

Our proposal was originally for 20k fixed equity release,but was changed at the creditors meeting
to the standard maximum return.
Seems this is the norm now.

[kallis3]

I can understand if you are in your 20's or 30's or even 40's. You should be able to remortgage easily, but when retirement looms (or in the case of hubbie he will be getting his OAP) I can't see the point. OK, they will get a few extra grand, but not a lot!

[molly16]

it is normally 85 % ltv but our creditors only agreed to iva that they have full equity out of the property and not 85 % . basically this is becaues we ran up 100k debts in 4 years !!!! didnt reealise we had done this much til we sat down and worked out everything we owed. we are both in our 30's, started iva nov 2005 and has been running problem free, we paid 3 months into it prior to the courts acceptance.we were told by our ip that basically the creditors were being harsh due to the amount of debt in the time .....so with our monthly payments we wil have paid 36k back, then we have a mortgage for £82k and property worth £135k so of course they want full resultant equity, then hopefully end of ! although the creditors wont get back the full amount of debt but not far off !! so we are just concerned that we cant get a mortgage as companies getting tighter who they are lending them to. bankruptcy was not an option as im a reg nurse and coulnt afford not to work , dont want to loose the house os we have 3 young kids ... hence alot of the debt , maternity pay was never enough and used to go food shopping on credit card weekly ,its amazing how quick it adds up !

[kallis3]

Those little bits of plastic!!!!!!!! I have done the same as you in the past and even fetched cash out of the hole in the wall then walked into the bank to pay my monthly payment!!

You don't realise how much it adds up.

Does your remortgage clause have a get out if you can't get one?