Just discovered creditors want us to remortgage and pay them the equity? Is this correct ?

[Mike.x]

Hi , I have revived a letter from my IVA provider to inform me we have only 6 months left and as such we need to see what equity is in our house??? The creditors want us to re-mortgage and pay the equity to them, I was unaware of this, is this correct and do they make you re-mortgage ?

[kallis3]

Hi,

Yes, you will have to get a valuation done to see if there is any equity in the house.

You won't be able to remortgage so your IVA may well continue on for a further twelve months in lieu of any equity.

[Foggy]

Hi. Please read your proposal, which outlines the procedure and options open to you. In all likelyhood, if there is more than £5k equity available you will get a 12 month extension. You will need to attempt to remortgage, but will not be able to.

[Lisa Thomas]

It's a standard clause you would have agreed to in your initial proposal documents - dust them off and take a look.

As Foggy says if you have the relevant amount of equitable interest (usually set at £5k or above) then the 12 month extension will apply instead.

I would recommend you check the equity calculation/valuaiton first to challenge whether it applies in the first place.