Question for the Experts

[coco]

I contacted my supervisor today to clarify a few points, please can you confirm if this is accurate.

My dividend of 42p including the equity release, and after 4 years i can obtain some of the equity to pay off the final year is the correct. Also what are the chances of my current mortgage lender allowing me to release the equity after being in an IVA or i am more likely going to have to find another mortgage lender.Thanks

52 payments to go

[MelanieGiles]

Coco

Sorry, but I don't really understand the first point. Do I assume that you believe that you don't need to make monthly payments during the final year so long as the equity release is effected? If so, this may be correct, but refer to your proposal and Chairman's report documents to be absolutely sure of the wording of this requirement.

Your existing lender may well allow you a further advance, depending upon the circumstances, but there are many other lenders out there who will lend. I hope that we will have an independent mortgage broker as an expert on the site shortly, who will be able to help more with these queries.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[coco]

Hi Melanie,

Basically i asked what happens in the final year, do i raise the equity which is approx 4000 and pay the final years payments. What he said was that my 42p dividend includes the calculated equity so all i would need to raise in the final year is my total monthly payments which i would have to raise from the equity or i can continue for the full 5 years so basically i could be finished at the end of the 4th year.

If that makes sense.

52 payments to go

[MelanieGiles]

Sorry Coco - that does not make sense to me at all. Can you type out the actual wording of this requirement (taken from your IVA proposal or Chairman's report to me on-line - then I will be able to advise you properly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk