Hi everyone its been a long time since I posted but to re-cap we are 1 year into on IVA paying £380pm it has flown by. Managing ok however I was wondering as we have good equity in the property value £160000 mortgage £80500 why not re-mortgage now rather than in year 4. We have a charge on our property with Barclays of £22500 approx also. We thought if we could re-mortgage say to £128000 (so extra £47500k)so keeping within 80%ltv then we could clear the charge on the mortgage in full(or can we make an offer on this too?) this would leave approx £25k to offer on the iva. We have paid £4560 already and total expected was £48800 (5 years iva and £26k re-mortgage in year 4 this would not be possible with the charge to clear too). Do you think this would be an ok offer we would of paid £29560 of £48800. What are the interest rates I would be looking at for my re-mortgage due to high risk being in an iva? Would my current lenders be against lending the extra? Me and my hubby are both in full time work with a joint income of about £2200 per month. Thanks for any advice in advance. Sorry if this is not very clear but unsure what info you would need.
Smile it makes people wonder what you have been up to!
It is certainly worth talking to your IP about, but I think you will struggle to get a re-mortgage now whilst you are in the IVA - and I don't know of any mortgage companies currently offering 80% LTV to people in IVAs.
Hopefully Tony Parsons will be around later on to confirm this point.
Hi Melanie thanks for your reply. We thought it might be a long shot but if you dont ask you dont get[:D] We just feel we will come out of an 5-6 year iva and still have the charge to Barclays to service so we will be looking at paying about £380 a month forever!
Smile it makes people wonder what you have been up to!
It is a bit of an occupational hazard, I am afraid when you have borrowed money that you can no longer afford to repay. Hopefully interest rates will not rise too much over the next five years, and that you will find an affordable method of re-mortgage at the end of the term.
just a thought,,& hind sight is a wonderful thing,, but why didnt you re-mortgage before you went into the IVA with your equity in the property couldnt you have got a good F& F settlement figure from your IP regarding your creditors & it would have been all done & dusted, or wasnt it a possible at the time.
Hi mikepapa you are quite right we did try to re-mortgage but our broker let us down. When we bought our house the loft had been made into a room ie no fixed stairs but electrics, window etc however in doing this they removed some important joists so to get a mortgage we had to have this fixed at great cost we did this on the instuction of our broker who told us they had a mortgage deal ready for us. The work was done and inspected and then the mortgage broker had some personal issues and stopped work on our case! By this time debts were getting worse so we had no option but a straight iva. I know we spent the money (business debt) but feel gutted that when the iva ends we still have £22500 of debt to sort out.
Smile it makes people wonder what you have been up to!
I know how you feel both me and hubby have IVA's but northern rock have a charging order so we will have £20,000 debt to sort out at the end of our IVA's don't know if i will have any equity to remortgage because we are about £5,000 in negative equity at the moment.
can i ask do you pay any thing now a month of the barcly charging order.
Thankfully our IP got Barclays to not claim anything for 5 years I guess in hope we can re-mortgage enough in year 4! Dont worry too much lots can happen in 5 years and I’m sure you will have some equity by then. Do you know if you can make an offer on a charging order eg if we can re-mortgage to say max of £15k or does it need to be paid in full?
Smile it makes people wonder what you have been up to!
we don't pay anything on the charging order will have to sort it out when IVA finish
when i spoke to Northern rock they said we could make an offer to them it doesn't have to be the full amount so will see where we are with that at the end od IVA
