I'm in the last few months of an IVA and we are at the equity release stage.

[Brendan.ll]

I'm in the last few months of an IVA and we are at the equity release stage.
Property value 250,000
Mortgage. 200,000
Been told by Grant Thornton that we need to attempt to release £15,000
I'm happy to do this but are there any lenders who would consider this?

[winter_blues]

Hi, in a nutshell, no.

So, try to obtain a couple of refusals online and screenshot the refusal and send these to your I.P. You will then be asked to extend payments for a further 12 months. This should also work out a lot cheaper than releasing your equity. Also, check the exact wording on your proposal but that is the norm.

Who did the valuation and was this on a forced sale basis?. On your figures I work the following ;

House value £250000 85% = £212500
Mortgage redemption £200000
Equity £12500

If you have the protocol wording in your original proposal then that should allow for £5k buffer. That takes it to £7500. It's fairly tight.

[Foggy]

Winter blues -- the £5k de minimis is a trigger point, not a disregard and isn't deducted from the equity available. It would be interesting to see how GT have arrived at £15,000 though.

It is, currently, all but impossible to remortgage, which would trigger the 12 month extension option ( assuming this is in your proposal). It is possible to get secured lending, but, in pre 2014 proposals, this isn't an obligation and the 12 month extension is usually less expensive in the long run.