selling to be able to pay an early settlement ?

[d_w1]

Hi, we are currently in an IVA , we are considering selling our property to release equity to be able to pay an early settlement to the creditors is this possibly?

[MelanieGiles]

Hi dw1 and welcome to the forum

This may be possible, but have you agreed to get the property revalued during the final year? If so, then your IP will need to revert to creditors to see if they are prepared to acceopt an early settlement. Are you struggling with the mortgage or IVA payments at the moment?

[d_w1]

We have had permission to sell to release equity, our problem is that in 2009 our fixed rate is due to end and our morgage payments will increase by £350.00 per month!This is worrying as we will not be able to remorgage and get a good deal while we have an IVA.

[d_w1]

Ican not remorgage due to the fact i have an IVA! This is not the advise i was given by DFD before i entered into an IVA agreement. I feel totally mislead by this and will be in a worse situation next year when my fixed rate is up. DFD are not really interested in helping me, only giving me the option of bankruptcy! Several morgage advisors have told me that an IVA does effect you obtaining a remorgage at an affordable rate. Any advise on this problem i would be grateful

[MelanieGiles]

For mortgage advice, you need to speak to someone qualified to give that, and I would recommend a chat with Andrew Graveson of Brightoak who regularly contributes to this forum.

You most definately can re-mortgage whilst in an IVA, but the interest rates currently being offered will be high and if you are worried about paying your lenders variable rate next year, you may struggle to find a better quote elsewhere.

How much equity do you actually have in the property?

[d_w1]

Hi Melenie, Our equity is approx £25,000 minus selling fees.We will have an increase of £350.00 per month if we stay with our exsisting lender,on a standard variable rate! If this is going to be our best deal , where do we stand in our agreed monthly IVA contributions?Will this increase in morgage payments be considered and will our contributions be lowered?

[MelanieGiles]

You will need to discuss this with your IP, as this has a major effect on your payments. If you currently have a repayment mortgage, then you might want to consider looking at a cheaper interest only option, but do make sure that you take proper advice from a reputable financial advisor before putting your home at risk.