Help and Advice..
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My wife has got debts of circa 49K and is currently considering IVA as a potential solution. My question is regarding the potential re-mortgage towards the end of the 5th year. Advice she has been give is that “in All Likelihood” a further year of payments would be acceptable and not require re-mortgage, even though we would have equity in the property. Potential re-mortgaging causes me to be nervous, what is the experience of others in this situation. All opinion / Advice much appreciated.
Hi and welcome. At the moment, and for the past few years, no-one has been able to re-mortgage. Of course, we can't foresee changes in the market which might allow this to happen in the future, but currently it is looking unlikely.
Do be careful, though, as some firms operate the 2014 Protocol, which introduces the possibility of a secured loan, rather than a remortgage.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The 12 month extension is a standard clause with some of the big IVA factories/firms. Not all firms include that in the debtor's terms.
It suggests that the worst case scenario would mean your wife's IVA would conclude after 6 years (on the assumption there is significant equity for the extension to apply)
As Foggy says the secured loan option could be included in her terms so check these carefully and only sign if/when she is happy to accept all terms.
Again forgive my naivety, so hypothetically, there would need to be a significant improvement in the ability for people to gain mortgages (with Debt issues) within the next 4.5years, for re-mortgage to be possible. And the likelihood would be a 12 month extension, as long as nothing is signed to agree to a secured loan instead of a re-mortgage? There would be no other lump sum to be paid at the end of the period if the additional 12 months had been triggered?
Correct -- the 12 month extension at the normal repayment level will replace the need to release equity, even if the equity would have been more than the sum released.
The only other possible lumps sums due to the IVA would be PPI refunds, windfalls and shares of overtime or bonus payments from employment.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Also remember that if you are financially linked in any way your credit history will be affected.
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.
Yes, any financial linking will affect your credit rating.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
