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i have about £60k equity in my property and owe about £35k on my IVA. My IVA advisors say I can't remortgage.Is this right??? It would solve all my problems if I could.

Hi sals and welcome to the forum

I must say it does sound strange to me that they won't let you remortgage - but I'm sure the IP experts on this forum will soon explain to you, and me the reasons why you can't.


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Hello Sals

If those figures are right, and they haven't changed much since you went in to an IVA,you shouldn't be in an IVA because you have to be insolvent, and on those figures you aren't.

Have you seen a significant rise in the value of the property since you went in to an IVA, is there a requirement to remortgage your property at some stage in the IVA and how far in to the IVA are you?

These are quite important questions for you to answer before someone hear can give you a proper answer to your question.

The thought has occured to me as I type, when you say you "owe £35k on my IVA" do you mean that is the value of the contributions that you have to pay in?

Hi
I would guess that Sals 35k is the total contributions.People forget that you owe your original debt throughout most of the IVA and it is only when the IVA is concluded that the shortfall is written off.
However if Sals does not have the equity release clause then it is possible to remortgage and return the original dividend,but it,s probable that they have the fourth year equity clause and unless the equity that can be released will cover the ORIGINAL debt and IP fees it,s unlikely that they would be allowed to remortgage now
Regards

Andy Davie
IVA.co.uk Spokesperson

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