i have just had a phone call about my closedown for the IVA due to end in october, and was told about the re mortgaging process, this was something i have been dreading, and after reading lots on the internet im now very scared and confused!, the equity in my house is only £12795, which apparently isnt enough to remortgage (info of the internet) so i will have to pay the iva untill that amount is met which is another 20 months! Im currently expecting a planned baby that is due 1 month after what we thought was the end of the IVA. now im panicing we wont be able to give our child the start in life we had hoped, has anyone been in or are currently in this situation?
I thought that if you could not re mortgage then they could only make you make a further 12 payments, this would mean you would have made 72 payments in total..
The usual situation is that if you have less then £5k equity then you do not have to seek to release anything and the IVA should finish after 5 years.
If you have over £5k equity, which you do, then you will technically be required to release a percentage of your share of this (75%~85%). However in practice you will not be able to get a mortgage advance so a variation to extend the IVA by 12 months will be put to the creditors to vote on.
You would not normally have to extend past the 6 year mark.
You need to confirm the exact details of your own situation with your IP though.
Last edited by vince666 on Wed Apr 18, 2012 8:12 pm, edited 1 time in total.
no the 20 months is in lieu of equity this is looking like i have been misinformed, i told the lady on the phone of my pregnancy and she said the iva wont be affected as im due a month after completion but i wont be if i have to extend, the iva was originally meant to end this month but we had 6 months added on when my partner was made redundant, so come october it will be 5 and a half years
I would probably try to talk direct to your IP rather than a representative on this occasion. Ask to make an appointment for a telephone meeting maybe? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi Pixie. A lot will depend upon what it says about this in your own proposal. Vinces explanation is how it stands, generally, in modern proposals --- older ones are often varies these days to bring them in line.
Yout equity figure seems over precise for a guess ----- might I ask how you came to that figure ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Right --- online valuations are tending to be on the high side at the moment and are pure guesswork as they average out all house types.
You will need to get a valuation on a forced sale basis (which works out at approximately 85% of full market value) and base your equity on that figure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I just wanted to say welcome, try not to panic - you and your baby are the most important thing in all of this.
Speak with your IP direct and seek clarification as to whether the valuations you have are sufficient or whether you need to gain forced sale valuations as explained.....come what may your IP will be able to advise you accordingly and should be able to put your mind at ease.
Let us know how you get on x
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
