Hello...This is my first post ...so please be gentle

[AppreciateAdvice]

Hello...This is my first post ...so please be gentle. I have been in an IVA for 25 months and am paying £290 per month. There is an agreement that equity could be sought from my house toward the end of the agreement ( which would be potentially worth an extra £16k ( based on figures used in the initial agreement - OR if i could NOT get a re-mortgage ( although there is equity in the house ) then an extra year would be added to my IVA before completion.
Regarding this info i have a few questions which i would really appreciate the wisdom of the forum on
1. Is it likely that i will be able to get a remortgage as currently being in an IVA would suggest that i maybe a high risk to a lender ? Or is it more likely that i will pay the final year ?
2. My sister is considering making an offer to pay off creditors and has asked how much would be an acceptable amount to offer in a F+F ? I have checked the forums and from what i have read it gives a formula that would be 290 - 50 = 240 x remaining months. ( but i guess this doesn't take into consideration the equity ?)
My IP has not really been able to help as they have to be impartial ? So i'm really hoping that someone may be able to help...Many Thanks.

[Shining]

Hi and welcome to the forum.

In today's climate it's unlikely you will be able to remortgage. It may be there is not so much equity now and may be worth getting a free valuation and submitting this along with your offer to your IP.

[AppreciateAdvice]

Hello...Thank you for such a quick reply ! I think there is enough equity to cover the 16k ...but i am a bit concerned that i would be forced into seeking a mortgage with a much higher interest rate ( of which i would fully understand the reasons ) but would mean i would continue to struggle. If it is the case that i am unable to get a remortgage then, if my Sis takes pity on me and makes a F+F offer should it be for the formula in my first post but for the payment time of 6 years ? Many Thanks.

[Hyperdrive]

Personally I would go for an F&F. The equity clause could be a can of worms. People are being forced to take on secured loans at punitive interest rates according to anecdotal evidence on here. And at some point in the future house prices will rise again.
With regard to your calculations, do the proposals not give payments going forward?

[AppreciateAdvice]

Hello Hyperdrive and thank you for your reply.
If there are no changes to payments then i will be paying £290 for the next 35 months ( or 47 months if a remortgage is rejected. Based on this ....what F+F offer do you think would be seen as acceptable by creditors ?
Based on the formula i have read it would be £240 x 47 months ( including the 1 year extension ) = £ 11280.
Does that figure sound sensible ? Or will the creditors wait to see if a remortgage is poss ? Thanks

[debt tired]

Why £240 per month if you are paying £290 now?

[AppreciateAdvice]

Hello Debt tired
I think the extra £50 reflects the amount of the payment that goes to the IP/Company as opposed to creditors.
But please advise me if this is not the case as i am a newbie...Thanks

[Hyperdrive]

The figure would be the 47 months. We had our F&F approved last month on that calculation. If the creditors can have their money upfront they will grab it[;)]

[luluj]

Welcome to the forum from me too - I would calculate on the basis of 290 x 47 months = £13630 - so would look to offer in the region of £13000 as a full and final. Hope this helps.

[AppreciateAdvice]

Hello...Thanks Hyperdrive and luluj.....
I really appreciate your advice.....So just to clarify...you think that the creditors would accept a F+F if i base it on 47 months and they wont wait for the potential equity release which based on the original figures could mean them getting an extra £16k on top of my payments over 5 years ?
Many Thanks.

[AppreciateAdvice]

Hello again....sorry...
I have also been sent info from my IP asking me to chase PPI claims. Would it be best not to do this and offer that as part of an F+F agreement that i will never pursue them ? I don't think there is a large amount of PPI that i am aware of but i guess that when i was hit hard on late payments etc so i may be surprised ?
Thanks

[luluj]

I certainly would offer this figure or there abouts first and also agree to the PPI enquiries...anything you gain from the PPI will automatically go to your creditors anyway and will not be included in your minimum payment etc....most creditors would prefer to have their money now rather than wait for another 47 months - so it may be in your favour - the likelihood is you would not be able to re-mortgage anyway so the extra 12 months payment would be called into play.

So yes I do think it is an opportunity and worth a discussion with your IP.

[AppreciateAdvice]

Hello....really appreciate your advice...thanks very much...what a great forum with great people...thanks again x

[kev59]

I made my F&f offer, after change of jobs and lower pay.
I had the potential of equity release after 5 years,
but it went through with payment = to months left to pay over 5 years

[Hyperdrive]

Every case is different and every F&F offer likewise. In our case it came from a family member who was hitherto ignorant of our circumstance. We were able to offer exactly the repayments, but I took off 2 months because that`s how long it takes so we`d have paid that anyway.