New to this forum, but into fourth year of IVA. Getting really nervous having read the agreement again and having read some posts. OUr verbatum statement states that if I own the property at the fourth anniversary of the arrangement, I shall obtain a valulation of the property and pay our share of any equity over £5000 into the arrangement to ensure creditors receive payment in full.
Original IVA was for £120K, joint IVA, mortgage on property is £72K, property is worth £180K (ish) we have been paying £685 per month for the last four years and I am really concerned that we will not be able to get a re-mortgage for the total amount we still owe. I am sick with worry, am registered disabled and on antid-epressants, we really thought we were doing the right thing and taking responsibility for our mistakes, but right now I'm not so sure with the curreny economic climate. We are currently paying £1500 per month on our mortgage and IVA. Any help would be TRULY appreciated. Our anniversary month (for fourth year is June)!
You need to discuss this with your IP, as potentially based on the figures you have presented you will be required to raise approximately £80k - assuming a maximum loan to value of 85%.
I believe that the maximum anyone in an IVA can borrow may be limited to 70% at present, but that still leaves you needing to find a substantial amount which you may find difficult if your only income is from benefits.
I am suprised the IVA was proposed in this manner in the first place, unless you have experienced a change in circumstances over the last four years, and it seems that a variation may be called for.
Presumably you have two separate, but interlocking IVA's - what does it say regarding how much has to be paid into the IVA's
LTV is between 60% and 70% depending on who will offer a mortgage - so LTV will be between £108k and £126k. You are presently borrowing £72k so the max further mortgage would be between £36k and £54k.
This ignores that you may be entitled to keep 15% each of your separate equity entitlement - this would reduce what re-mortgage would be required.
However what does it say in your proposal about what happens if you can't re-mortgage?
It may well be appropriate to seek a variation based upon the new Protocol that would give you the 15% discount each - and if a mortgage cannot be raised to pay an additional 12 months of contributions.
As said discuss with your IP. Let us know how you get on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
You have mentioned a "variation" - how is this possible? Does this mean a reduction of pence in the pound due? All these adverts that are advertising wiping out 75% from the debts how is this possible, we want to pay back as much of the original debt as possible, without having to pay 25 years extra on our mortgage. Also if we were unable to raise the full re-mortgage does this mean that we would not only have to re-mortgage as much as we can but then have an additional 12 months IVA to pay. At this rate the IVA will take forever to repay. It certainly does not seem that you are looked at as being responsible for your debts and wanting to pay back, no wonder BR's on the increase.
Surely the 15% discount is catered for within the 30% to 40% figure you have quoted David?
A variation would be possible by drawing up a counter proposal and then calling another meeting of creditors for them to consider your counter offer. When you entered into the IVA was the issue of having to raise money against your property not clearly explained to you?
The issue of taking out a mortgage at the end of the IVA over a much longer period ought to have been a key consideration at the time your proposals were being considered by you and your creditors.
It does appear to move the goalposts somewhat Frazzled.
One for the Ips here,what evidence do you need that someone has attempted to remortgage but could not,as its clearly better to pay an extra 12 months than end up worse off longer term due to a remortgage?
Could someone just apply at a few high street lenders knowing full well that they wouldnt get accepted anyway?
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Yes the issue of us re-mortgaging was discussed at our initial meeting, however it was not clearly defined that we would be paying 100p in the £, although that is what we are wanting to do. However, the initial proposal shows that they valued our house at that time at £180,000 (four years ago) yet house prices in the area have fallen from £220K to what I believe is a realistic figure of £180,000. My main concern is that in the initial proposal they included a 100k equity for our properrty in addition to the IVA payments (which was calculated over 60months) this would pay 100p in the £. However, if we do not get the re- mortgage how are we fixed. If the house is valued at 180K, we currently have mortgage for 72K,we would be unable to borrow in excess of 70%ltv - what options do we have then?
Dont worry,if you cannot release the required equity what does it say in your paperwork. Some have it written in that payments will continue for an extra 12 months maximum. Other IVA appear to end after the 60th payment if little or no equity can be released.
YOu cannot be expected to release equity based on figures from 4 years ago and a new valuation will be reuqired so you know exactly what you have to try and achieve.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
We will not be able to remortgage Platicdaft - too old. We can't get interest only for a time - too old. I think Melanie has covered that in our proposal. Frankly we do not care how long the IVA lasts we just hope Melanie gets it through. J
Many like you Elv5 that reach an age during an IVA that prevents remortgaging,people must make sure if this is likely to affect them,that they deal with it before signing up to an IVA.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Surely the 15% discount is catered for within the 30% to 40% figure you have quoted David?
Actually no. Any owner on equity release only puts in 85% of their equity interest (15%) stays with them.
Thereafter the re-mortgage cannot exceed 85% of LTV.
Under £5,000 ignored.
And the re-mortgage payment cannot exceed 50% of what was being paid as a contribution into the IVA. Hence if that fails then 12 month of continued contributions.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I fully understand that David! But your post suggests that the debtors could keep another 15% of the 60% to 70% LTV figures you quoted, unless I am misreading you. I think posters will get confused!
I have to admit I was a little confused over the 15%, thanks for ironing that point out. I am going to arrange a valuation, really wished that i had know about the site four years ago. You are doing a great service. Will keep you informed how we get on.
