www.iva.co.uk

Hi

I'm 3 months into my IVA and can honestly say its going smoothly - so far! I've got a thinkbamking account as recommended by Andy and that has helped a lot.

My problem is I have a mortgage on my house for about £58,000 and I pay £450 per month, I bought the house about 8 years ago. I also took out a secured loan around 18 months ago for £37,000 and am paying nearly £500 per month. This loan rate is going up every few months and I'm wondering if I am able to remortage to combine the two amounts whilst in IVA as this would help me to budget better, I would only be making one payment and any extra cash could go to the IVA. There isn't a clause in my agreement to remortgage at year 4 as it was accepted that there was little equity to be had. When my house was vlaued to take out the secured loan, the valuer put it at £80,000 despite being a 4 bed large house, which I couldn't understand at all - but hey they are the experts!!

Can anyone help or advise me? Does anyone know anyone who would offer a remortgage to someone in an IVA?

Thanks a lot

LULU

Hi Lulu77 -
There are plenty of lenders who will consider people in IVA's. Your mortgage options will partly be determined by the lenders view on the valuation of your home.
With a £58000 mortgage and a secured loan of £37000 (may be less by now?) the secured debt total is possibly £95000. In the current lending climate I do think it unlikely any lender would lend more than 90% of the value of the home.
If these were the facts your home would need to value up to £106000 or more to make this a realistic option. I'd suggest you get a valuation (perhaps let a local estate agent know you're thinking of selling and ask them round to value the house?).
Check the current balances of the mortgage and secured loan as well. Once you've got that information you might contact an independent mortgage broker (who will have access to many lenders provided they offer a "whole of market" service) to discuss the details and they'll be able to advise you on your options. There are brokers who post regularly on this site who would not charge you to talk it through.

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk