Nearing the end

[wangston]

Hello all,

My brother has an IVA that is coming to the end of the 4th year. He has informed that they say he must remortage and pay a lump sum of £8000. If he can't remortage then he needs to make his monthly payments for another yr.

Can they dictate which mortage compnay he must use? What constitutes trying to get remortaged? in the IVA comapnies eyes??

He may also loose his job or have a reduced income can they take his house from him?

He doesn't have a PC hence me asking the questions.

The comapny in question is Accuma Insolvency Practioners in Manchester

Thanks Wayne

[MelanieGiles]

Hi there and welcome to the forum

Your brother's IP cannot dictate which company he should use - indeed it would be ethically incorrect for him/her to do so.

If he is worried about the effect a larger mortgage may have on him and the property, he should take independent financial advice.

[Skippy]

Hi Wayne and welcome to the forum.

Your brother will need to check with his IP, but as far as I'm aware he will need to get mortgage quotes from a couple of companies. His IP cannot tell him which company to use.

If he loses his job or has a reduced income he can either ask his IP for a payment break while he looks for work, or else ask them to ask the creditors to allow the IVA to finish with no further payments.

No one is going to want to see his IVA fail at this point, so I hope things work out for him x

[wangston]

Hello

Thanks for the prompt replies.

MelaineGile, you say if he is worried about a larger mortage he should take advice.

Why should he have increased payments for the term of his mortage, when he can continue payments of the IVA.

If he had problems obtaining a new mortage EG a company offers him a mortage at say 8% but this is 2 or 3% above standard does he have to take it to satisfy the IVA or does the choice belong to him ?

[kallis3]

The idea of the remortgage is to release money to pay more across to the creditors.

Most clauses do state that if your remortgage payment is more than 50% of the IVA payment, then you cannot do it.

In which case, he will have to continue for a further 12 months.

[MelanieGiles]

I cannot possibly advise properly on this point, when I have not had sight of the IVA proposal. Your brother really needs to discuss his obligations under the IVA with his own IP.