Settlement figure advice please...

[monkey240175]

After having an IVA for just over 3 years I have only just discovered this forum and have found the advice very helpful but would like to see if anyone could help with my specific scenario...

I have had an IVA with BE since February 2006 and it is due to end in January 2011. My total outstanding debt was £40,000 and so far I have paid back £13,500. Over the remaining 21 months I am due to pay back a further £7,200 plus an equity release of £13,000 at the end of this year.

However, due to the current economic climate I estimate I will only have approx £8,000 of equity in my property by this point. Also, my current mortgage lender has recently been nationalised which means they will not let us remortgage or release equity. Therefore I would only be able to release equity by remortgaging with another lender and I don't feel any lender would consider my application in my current position.

I would like to make an offer to settle my IVA early and wonder if anyone can offer advice as to how much is a reasonable offer.

Assuming I cannot release any equity I was thinking of offering around £7000 which means in theory they would be getting the remaining 21 months of payments up front.

Does this seem realistic? Any advice would be appreciated. Thanks

[kallis3]

Hi and welcome to the forum.

I don't know if that would be a good offer or not, but one of the professionals will be along to assist later.

[MelanieGiles]

This may be acceptable to your creditors, as everyone with equity release provisions are currently having difficulty in re-mortgaging. Where would you be getting the money from to settle?

[monkey240175]

Thanks for your reply.

The money would be a gift from my employer.

If the offer is accepted and when completed, do you know how long the IVA will stay on my credit file as I am wondering how long I will have to wait before attempting to remortgage?

Thanks

[MelanieGiles]

It will stay on for six years from the date of the original creditors meeting. This should not stop you from being able to re-mortgage, but it might mean that you would have to pay a higher interest rate in view of the credit risk lenders may still perceive you to be.

[monkey240175]

Thanks for your advice, much appreciated.

[David Mond]

Who is your mortgage with? Northern Rock are now giving mortgages.

[monkey240175]

It's with Mortgage express.

Regards.

[MelanieGiles]

They are owned by Bradford and Bingley I believe and so far as I am aware are not writing new loans at the moment.

[David Mond]

As far as I am aware the Government owned mortgage businesses have been told to lend. Who now owns the Mortgage Express mortgage book?