We have an IVA which is due to finish at the end of the year. Our mortgage term is due to end in June (we are trying to negotiate an extension with Barclay's), if we can't get an extension our only option is to put our property on the market and look at a cheaper property, but would we have to put all the equity into the IVA, leaving us unable to buy another property?
Hopefully you can get an extension but if not then some, if not all, of the the equity would go to the iva less legal and estate fees up to the total amount of your original debt plus fees. Anything left over will be yours.
Bear in mind though that until your IVA has finished you are unlikely to be able to get another mortgage.
Sharing from experiences of dealing with debt
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With the rx1 restriction everything will friend on your ip.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
One option would be to try to raise some funds to be able to offer your creditors settlement of the IVA now with a full and final offer. That would then leave the property free for you to sell, if that's what you decided.
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If your mortgage payments increase after your deal ends then your IVA company should decrease the payments to compensate your income and expenditure. But read your Iva documents closely because they usualy ask you to value your house 6 months before end of Iva with a view of releasing any equity into Iva. Obviously you wont be able to remortgage to release any equity because of your poor credit so they will extend the Iva term by a further 12 months.
My Iva was a 6 year one and with 6 months to go i had to send in some estate agent valuations. Fortunately, I only had 5k equity and they didnt ask for anything.
Pleased to say my Iva ended on time in March 2016. Completion certificate came last week