Could anyone guide me through the process of arranging an equity release whilst in an IVA. I'm currently nearing the end of year 4 of my IVA and have to try to remortgage 14k. Also, what happens with regards my monthly payment to my IVA if the remortgage application is accepted by a lender, do my IVA payments decrease to compensate for my mortgage payments increasing ? Thank you for your time...
You should try your own mortgage provider and usually one other, depending upong what it says in your proposal.
Not sure what happens with your payments, whether they decrease or not.
If you can't release, you may find your creditors will want you to pay an extra 12 months.
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Jan has said it all - and the quicker you find out whether a re-mortgage is possible, by either approaching your existing lender or looking for a new lender, you can then discuss other options with your IP based on your individual circumstances.
If your IVA stated that you need to try and remortgage at the end of the 4th year this is usually based on remortgage up to 85% of the value of your property (so in your case this should be the 14k) any fees you may have to pay (solicitors, Valuations etc) should be taken out of this amount.
As your monthly mortgage repayments will increase if you remortgage your disposal income will be less and the IVA payments should reduce accordingly.
If for any reason you are unable to remortgage the property (due to poor credit, not enough disposable income to cover repayment etc) you may be required to continue paying into your IVA for an additional 12 months in lieu of the remortgage.
I would recommend that you have a read of you original IVA proposal as this should clearly state how your property/remortgage will be dealt with. Your IP should also be able to provide you with some guidance.
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support.
Just spoken to my IP, advised to obtain 3 valuations and send them in, creditors will then be contacted to see if a remortgage is a viable proposition. Thats all my IP would say at this stage.
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
