What happens if I am tied into a fixed rate mortgage with costs to get out and remortgage ?

[jburbeck]

I started my iva in October 2013. I am a aware that in month 54 they will be looking for me to try and remortgage to release equity to clear the remainder of the outstanding debt. And I am aware that if my mortgage payments go up by more than 50% of my monthly iva payment that I will be expected to pay an additional 12 months of payments. What happens if I am tied into a fixed rate mortgage that will require me to pay additional costs to get out of. Will I be expected to do this.

[ilikewatch]

In my case the early repayment charge was included in my redemption quote from my mortgage company - this reduced the available equity and meant that my IVA finish at the 5 year mark - without the £5K early repayment charge my equity would have been above the threshold and I would have had to try to release it/extend the IVA.

I would assume that every company would include the early repaymnt charge when calculating available equity, i.e:

Forced sale valuation of property £100,000

Mortgage balance £90,000
Mortgage Exit Administration Fee £200
Early Repaymemnt Charge £5,000

Available Equity £4,800

[Foggy]

There is very little chance that you would be able to remortgage so the question wouldn't arise.