real propect of never being out of debt, ever

[jimm]

We are 1 year 3 months into our IVA. Our total debt was £90k and our payments have just risen to £850 per month from £771 last month.We have a condition that we release equity from our property at Year 4. Our house is currently worth £250k and our mortgage stands at £150K. the thing I am worried about is my wife is 58 years old and retires at 60 years. I am 57 years old and retire at 65 years. In 3years time my wife will be 61 years old and I will be 60. my worry is that my Iva requires me to remortgage to find £30k. My mortgage is fixed until the year 2018 at 4.86% but not fully paid up until the year after. Iam worried that if I have to remortgage I will have to pay redemption charges, accept a higher rate and to make it affordable extend it into my 70's. This will not clear my debt at the end of 5 years as it is supposed to, and I have a real propect of never being out of debt, ever. I hope I have explained my dilema well enough and what is your thoughts and advise. This is truely causing me concern.

many thanks! Jim

[iva_squirrel]

Good morning Jim and welcome to the forum.

I completely understand your concern but I am surprised that this was not discussed with you before you went in to your IVA. Would you have to remortgage to release equity? Can't you get a second mortgage on the house so that you do not pay the redemption fees.

Kind regards,



Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[MelanieGiles]

I suggest that you contact a mortgage broker who is familiar with adverse credit mortgages to give you proper investment advice. We are not qualified to give this sort of opinion on the forum.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

If you have equity of £100k and and debts of £90k why are you in an IVA? Is this becasue your house price has increased within the last year. Have you thought about selling the house and paying the debts off and then renting?

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp