Billy12 wrote:Hello- I am seriously considering an IVA but I am worried about the remortgaging part near the end- surely it wont be possible to remortgage after being on an IVA? Also if I have to try and remortgage with my own company surely that would go against me if they see I have been on an IVA? Or would they not be able to do anything if we have kept up with mortgage repayments? Also it is a joint mortgage and I have been told my partner will stay out of it and not be affected apart from his salary going towards outgoings?
Any advice/success stories would be very much appreciated. Thank you.
5 years ago everyone got the 12 month extension as it was then impossible to remortgage. Now, a small percentage of lenders will remortgage in an IVA. Who can tell what the market will be like in another 5 years ? Added to this, some proposals these days have added the possibility of a secured loan, rather than a full remortgage, which makes more people, potentially, able to release equity. So it is an aspect that has to be thought through very carefully.
Your current lender will be aware of the IVA regardless of whether you approach them or not as a restriction will be placed on the title deeds.
Your partner will be unaffected by your IVA, except where joint property is involved (or joint loans). The equity to be released will be based on your share of equity, so his share will be protected, but he will have to agree to the further lending, if it comes to that, to release your equity. In the case of any joint loans they would become solely his responsibility.
Best scenario is that you a) choose a firm that does not require the secured loan facility and b) be unable to remortgage and therefore get an extra 12 months on the IVA term or c) have less than £5k equity, in which case the clause will not be triggered at all.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014