My Iva is going well so far (20 months gone). It is the type where in year 5, I will be asked to look at releasing my share of equity. However, at that time I will be 50 years old, with only 7 years left on my mortgage. Can my creditors reasonably ask me to extend mortgage until I was , say 60-65. I was planning to retire at 55!!
Yes - as this is what you agreed to 20 months ago when you entered into your IVA. Did you raise your concerns about this with your IP at the time your IVA was proposed?
I'm just a bit ahead of you in the IVA stakes and we also have the same equity release. If you can't release any equity then the normal thing is that you extend by 12 months. Check your proposal/chairmans report to see what it says.
If you can get the offer of a mortgage, your payments should not be more than 50% of your IVA payments.
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
If there is sufficient equity in the property and it can be raised your creditors will expect you to remortgage. If there are only a few years left on the mortgage there could be substantial equity available as the mortgage balance will decrease rapidly in the next few years. I doubt if they will allow you to retire at 55 unless there are compelling grounds such as your type of employment.
Your IP should be able to advise further as they would have had to have explained this to you at the time your IVA was approved.
We will have substantial equity at the end of 5 years, but only have the 12 months extension.
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
Hi Jan. If you will have substantial equity available surely you will have to remortgage and release it unless there are no mortgage products available. I know it is almost impossible to obtain remortgage funds at the moment but this may change in the next few years. Is your property excluded and a 6 year offered instead?
No, the extra 12 months is if we can't remortgage.
Ours might be due to age. hubby will be 66 and I will be 59. We struggled to get extra on the mortgage last time because of that.
He is already retired from work and on benefit, by then he will be an old git and just on a pension. I won't be far off retirement from my current work.
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
I see what you mean. You do not have the remortgage option and should have no trouble getting that on paper whereas Murph may actually be able to get a remortgage and creditors will expect his IP to investigate this option thoroughly.
