I am currently in month 52 of my IVA.
As a 60 year old, I am looking to go for an Equity Release facility (we have no mortgage debt) to fund the final 12 months payments iethe sixth year, as required under the terms of the IVA.
My IP has NOW suggested that I may struggle to get a lender to provide an Equity Release facility.
Does anyone on the forum have any thoughts on this?
I would suggest a word with Ryan and / or Shaun, who are both whole of market brokers experienced in placing mortgages for ex-IVA'ers, as well as secured loans for equity release.
Their details can be found under the "Ask a Question" tab (top left) and scrolling down the page to the Experts Details Section.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi and welcome to the forum. As there are conflicting interpretations of 'equity release' between the IVA and mortgage lending worlds can I just to be clear on what you are hoping to do? Do you mean that you'd like to look at a product with monthly payments to meet or where the repayments are rolled up onto your mortgage debt?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Many thanks for your replies, Foggy & Shaun.I currently have no mortgage debt, and am looking for the best way to release equity to fund the final 12 months of the IVA, as required by the IVA's Terms & Conditions.
I 'd guess this could either be done by way of some form of secured loan or by a Lifetime Mortgage approach. I'm really looking for best advice on how to proceed.
Thanks for clarifying. Depending on the rest of your circumstances, the value of your house etc. there may be some options available to you. Presuming that you are attempting to deal with the equity release clause, extending the IVA may be another option. It would be necessary to go into a little more detail than is possible on a public forum and for someone to advise you effectively but do you know why your IP thinks it won't be possible?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Hello Shaun.
I've only spoken to their Helpline, but their experience (allegedly) is that 99% of their IVA'ers can't get the required facilities and therefore extend the arrangement by 12 months. If that is true, of course, it begs the question as to why have the clause in the agreement in the first place!
Needless to say, the IP has offered no advice about what happens should one's income fall for whatever reason!
Hi PMG - it is true that most people in an IVA cannot remortgage (although there are other options such as secured lending, which has been introduced in the new protocols).
The reason the clause is still included ( at one time remortgages were possible) is that the market is always changing and there is always the possibility of such remortgages being possible again during the term of the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As Foggy says, the market is constantly changing and, whereas around the time your IVA was drafted it would have been relatively straight forward to re-mortgage, in the current climate it is far more difficult. Hence you and lots of other people in your position are experiencing the same issue.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Hello Andy & thankyou for your question.
I'm afraid I'm not quite sure what you mean about the Report's comments on the equity? Just wondering if you are thinking about a specific issue.
Apologies if I'm sounding a bit thick on this issue!!!!
Andy is referring to the documents you would have had following the creditors meeting at the beginning of the IVA. Any instructions as to the property will be recorded in here.
They will be specifically referred to in your proposal. The Chairman's Report will refer to any changes made by the creditors and will over-ride the proposal on amended details.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We did have mortgage debt when the IVA was set up- this was extinguished by month 13 of the Arrangement.
At month 54, a valuation is to be obtained by the IP and I'm then to use 'best endeavours' to obtain a re-mortgage.Two quotations are to be sought on the basis of a max 85% LTV less existing secured borrowing (nil) subject to affordability. If no mortgage facilities are available, I'm supposed to make another 12 monthly payments into the Arrangement.Obviously, only my share of the equity is brought into any calculations.
The Arrangement 'does not include any requirement whatsoever to place the property on the market for sale'.
Just to add to add to the complexity, I had to enter a Settlement Agreement with my erstwhile employers last year, the proceeds of which are about to expire. Going forward, the combined nett income of my wife & I will be down by 60% and our income available to the IVA down 70% from a year ago, in consequence of said Settlement Agreement. We are now only receiving pension income and there is little to no prospect of any decently-paid employment for the over 60s in this area. I do not wish my wife to dip into her savings to help with IVA contributions (she is not part of the IVA). Do you have any advice to offer regarding the final eight instalments (and the potential further 12 months) due under the IVA (52 paid at end December)?
Almost certain you will not secure a mortgage or loan. There could be a chance of an equity release scheme where no repayments are required but you need to seek expert advice on this area. If there is only a requirement to remortgage rather than any other type of equity release I would look to either continue with the further 12 payments on a reduced level [if agreed with by your creditors] or offer a lump sum full and final payment if your wife can offer the money.
Personally I would try to put together a full and final offer based on your remaining 20 payments
