Remortgaging at the end of IVA, please help

[Nali]

My partner and I have 7 months left of a 6 year IVA, we pay 145 a month. McCambridge Duffy has contacted us asking for:

1.Recent property evaluation
2. Mortgage redemption statement.
3. 2 mortgage offers/illustrations.

My income is half of what it was when we got our mortgage as I am now self employed.

If we cannot remortgage or do not have enough equity, what will happen?

Our IVA is already a 6 year one, can it be further extended?

If we could borrow from family and pay the £1015 (145 x 7 months of IVA payments) would that be ok and the IVA end? Or what would be a good offer?

Is it ok to apply online for the remortgages and if refused just show proof of the rejection?

If we can get a remortgage, what if the interest rate is higher due to bad credit etc, we do not want to end up in debt again?

Any advice will be much appreciated.

Thank you so much

(I had posted these questions elsewhere, forgive me if this is the wrong place)

[lifenoteasy]

Ask them directly - they are very open.

Irrespective I'm sure Michael people's will pick up and respond.

[Shining]

Hi there, Michael who is a representative of McD will be along at some point I'm sure and will advise.

He may be best placed to answer but in the meantime just hang in there, he's always very friendly and will give you the best advice.

[Michael Peoples]

Hi Nali. Without knowing the actual specifics of your case I can only answer in general terms but feel free to contact myself or the supervision team directly.

If there is no equity or the equity is minimal in line with the IVA proposal and modifications then the IVA will cease at the end of the six years. If there is equity and you cannot raise it then your IVA will be extended by twelve months and the property excluded. Until you know how much equity there is in the property it is pointless even looking at the remortgage conditions.

If you do have sufficient equity to release then any sort of refusals are fine whether from your existing mortgage company or anyone else.

Finally any settlement would depend on what level of equity there is in the property and whether or not the IVA is to be extended. If there is no extension then your offer would be enough to clear the IVA although you could just let it run its course rather than paying off early with borrowed money. If there is to be an extension creditors may feel entitled to another year's payment so I would think an offer neared to £2500 would be more likely to be accepted.

I hope this helps but anything else and please let me know.

[Nali]

Hello everyone, thank you for your responses.

Michael a special thank you to you. You provided a lot of information. I guess it would make sense to get the redemption certificate and evaluation of the home first. I will update you all or contact you directly.

Thanks again!

[Michael Peoples]

Hopefully not much equity Nali and your IVA can close down soon. After six years you deserve it.

[Nali]

Hello again to you all,

As the IP requested we have had a valuation done, the house has been valued at £260-270,000. We still have 130,000 on our mortgage to pay. We have have failed to get a new mortgage and have proof of rejections.

Am, I right in assuming that another 12 months is likely to be added to our 6 year IVA after all?
Are there any other possible outcomes?

If the IVA does carry on another year is how much we pay still based on affordability and the equity we have plays no part?

Michael your input would also be greatly appreciated

We have so come far, we are desperate for it all to end.

[Michael Peoples]

Your assumptions are correct provided yours is a standard case and there are no HMRC conditions for example. If you cannot remortgage the IVA will be extended for twelve months at your current surplus and then closed down.

Send in the paperwork and if you can raise settlement funds let us know and we can call a variation.

Since you cannot refinance and all creditors would receive is the extension money you could propose a full and final on this basis if you can source the funds. I would think about £2,500 would be enough as otherwise creditors would have to wait a year and a half for the same amount.

[Nali]

Thank you so much Michael. You have been very helpful.
I will post an update on here to let you all know. Hopefully sharing the story will help others in a similar situation.