I have just read my proposal which is protocol compliant. I am now getting confused with all this 85% ltv and £5k de minimus stuff.
our iva is joint. We owe £148,500 on our mortgage and we are paying interest only. and our house will not be valued anymore than £159,950 at the maximum.
If it was valued at £159,950 then there will be £11,450 equity (more than £5k) so will that mean we have to extend???
it is very confusing.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
Christabelle, It is 85% of what your house is worth, If it was valued at £159000 then your 85% LTV would be £135150.
Basically what that means is you will not have to remortgage, and it should complete after 5 years. Some IP's though are now saying the £5k de minimus rule applies to 100% of your property valuation and if that did you would then have to do another year.
It is very unusual and expensive for anyone to get a remortgage while in an IVA so a secured loan or twelve month extension are the only real options. However market conditions are easing so as Melanie suggests speak to a financial advisor such as Shaun Vicery for the current position.
A word of caution - notwithstanding that many IVA cases are drafted with the Protocol terms to the letter, there are many where these have either been modified by the IP or later on by creditors. IVAs are unique to the person they relate to, and general advice and guidance provided by forum members - who don't know the full facts of each case individually - cannot necessarily be relied upon.
Based on the information above, there is no equity for you to raise - but please make sure you run thus by your own IP as there could be any number of factors which could alter this situation depending upon the wording of your own proposal.
Thanks Mel for the advice and thanks Christabelle for the encouragement. Lets hope we all get the outcomes we deserve. I have just had a pay rise so will let the IP know on Monday so i don't get unstuck right at the end. Good luck all!
