Remortgage in IVA

[hara]

Dear all,

Last year I did not know that IVA existed and remortgaged for 249000,interest only,paying 1037 per month.I had 210000 pounds in unsecured debt.Mortgage was provided by GMAC.

Now I am in IVA and over five year period I will be paying about 71000.

Does not it mean that my position should be favourably viewed for a remortgage as my total debt is reduced and cleared in Five years?

Hara

[jpj]

A remortgage depends on how much your house is worth !
If you have a 4th year equity release clause you wont be able to remortgage until then UNLESS you are doing it to offer a full and final settlement.most of your equity now belongs to the IVA and not to you!

[hara]

Dear jpj,

AS my mortgage will come out fixed rate in March,I have verbaly asked it to be remortgaged for the same amount that I hav barrowed at present,so that the monthly mortgage payment does not go up significantly than what I am paying at present.

Hara.

[jpj]

I had a fixed rate mortgage for £221K(it was costing me £1000 a month) my fixed rate ended and it went onto standard variable (1300 a month) I then managed to get mine down to 1100 a month,with the same lender,whilst in my IVA.
You dont neccessarily have to change lenders, As long as you borrow the same again you can easily change rates with your current lender..you dont have to reapply. I didnt even mention my IVA,I just said can i re negotiate my rates please.

[Adam Davies]

Hi
You can remortgage during an IVA as long as you do not release any equity and inform your IP.Hara,most companies will view you favourably because you are not servicing the full unsecured debt anymore and so your disposible income is higher.Jpj's advice is good,contact your existing lender and see what they can offer you in terms of rate.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[hara]

Thank you both that was helpful.

Hara.