Month 54 clause

[Beans on Toast]

I have noticed a lot of posts, especially by people in their third & fourth years with regards to the remortgage clause.

We too have this clause and it was only after reading through our proposal again that I realise that we would also be liable for the extra 12 months payment if we cannot remortgage.

This was a mistake on my part not to have picked it up in the first place, however, if that is the case in 5 years, so be it. we would much rather just get it over and done with. We did expect a 6 year IVA because of our secured loan. This never materialised and at the moment due to this loan, we are currently at -24k based on forced sale figures (their words) which is looking pretty bleak for much change in 4 years time.

If I am understanding it properly, we would have to achieve 5k each in equity after LTV to remortgage. If this is not the case, would our IVA conclude after 60 months.
Many thanks for any answers, just read through the post and I sound about as clear as mud [:o)]

[MelanieGiles]

Check the wording again - the IVA protocol gives the supervisor discretion to accept alternative proposals such as a 12 month extension. This does not necessarily mean that this is set in tablets of stone.

[Beans on Toast]

Evening Melanie, think this is one of those occasions where I need to ring up and clarify exactly what our options are. maybe better now than later. Thanks again for your time.

[kallis3]

We also have this clause in ours. Our house will be revalued and we then have to approach two reputable lenders to to try and get a mortgage of 85% LTV. Obviously at the moment we don't know what the equity will be then (at the moment we have about 40k). If we can't get a remortgage then our IVA will continue for another 12 months. This would actually be better for us as we would be paying much less.

I can't see us getting one as hubbie will be 65 and I will be 58. We struggled last time to get a remortgage and that was about 3 years ago