Hello, this is my first post and I have a question for the forum.
I am in the 5th year of my IVA which started in 2006.
In the terms of the IVA I was levied an additional 2 payments at the end of the IVA in lieu of my wifes car. When entering the IVA I was aware that in month 54 I had to introduce £3600 into the IVA from equity of my home. I have tried to look for a remortgage to introduce these funds but to no avail once you mention you are in an IVA most companies do not want to talk to you. At my last review my IP said he woulod need to see proof of declined mortage applications. The mortgage queries I carried out were online with different brokers and usually ended up with an unsuccessful request. Ive even tried contacting some lenders but in each case when you mention you are in an IVA its usually "Sorry we cannot help you". My question is this. Are there any lenders out there who will remortgage whilst in an IVA? I do realise that the terms of my IVA state that if funds cannot be introduced that the term of my IVA will be extended by 12 months @ £600 per month thats double what I would have to pay into the IVA at month 54.
Its now month 54 any help or advice appreciated. For info i have about £20k equity which currently works out at a LTV 87.5%[?]
Regards
AndyG
IVA - 61 of 72
Im nearly at the end of my IVA I can almost taste it
Hi there and welcome to the forum, I think a lot of us will be experiencing the same problems as yourself.
I don't personally know of any lenders who will remortgage us. Do you have a family member or close friend who could raise that money for you and you repay them? (unsure if that would work with your IP but worth a try for the amount of £3,600).
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I agree with Lesley, if you can get someone to help you out with the money that would be great.
It is unlikely that you will be able to get anyone to help you with a remortgage.
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
Unfortuantely Ive tried this route trying to lend from a friend and family member offering to repay but alas this has been unsuccessful. Finding proof is the hard thing as Ive not received any paperwork declining offers just on the website your applications declined (I wonder why???) I thought it funny when my IVA was setup and they said I had tointroduce these funds. I thought then how am I going to get extra money when Im in an IVA seems logical to me.
Regards
AndyG
IVA - 61 of 72
Im nearly at the end of my IVA I can almost taste it
Perhaps if you could print off the paperwork declining your application that would be a help?
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
Ive actually saved screenshots of the declined messages from 3 lenders. Do you know if anyone else has been levied because of a vehicle? At the time I was driving a mere Ford Mondeo diesel and my wife had an 02 Reg A Class Merc. It was because of the Merc I was levied 2 additional payments in lieu of the vehicle value. I suppose IVAers shouldnt be driving round in Mercedes cars then
Regards
AndyG
IVA - 61 of 72
Im nearly at the end of my IVA I can almost taste it
You are allowed a reasonable vehicle - your Merc was obviously taken into account at the time. I had a car worth about 8k at the time of the IVA and this was excluded totally.
I would send the screenshots to your IP so they can see that you cannot raise this money.
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, Newspaperman. How was the amount of £3600 calculated? Was it based on the equity in your property at the start of the IVA or an agreed amount? If it was based on the equity at the time the amount of equity to be raised now will be based on the current equity which in your case is £8,500, (assuming you have a joint mortgage) – half of £20,000 times 85%. So an extra 12 months payments at £600 per month is still less than the equity release.
As Lesley and Kallis have said, it is extremely unlikely that you will get anyone to lend you the money. I was in a similar situation. At the start of my IVA, my share of the equity in our property was calculated at £15,000 but in year four, when I needed to remortgage, the equity was £19,000. I was unable to remortgage and got a refusal letter from my current mortgage provider as well as my bank. This was sufficient for my IVA company to approach my creditors with a variation meeting to forego the equity release in lieu of 12 months extra payments. My creditors agreed to this. This works out at £7,440, (£620 x 12), which is much better than being able to release equity though I am bound by the terms of the IVA for another 12 months. This is definitely a case were the poor house market has benefitted me!
Thing to remember when comparing 12 extra months to the amount of equity is that IF you did manage a remortgage it would be at sub prime rates ( so a whacking interest charge) which, over the term of the mortgage would work out very expensive, compared to 12 months.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think the extra 12 months is preferable to trying to remortgage.
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
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
As Kallis says, hopefully the screenshots will be acceptable. Attempting to remortgage at the moment is probably just a box ticking routine as your IVA company and your creditors will be well aware that it is nigh on impossible to borrow the money.
I also had no luck raising equity, but there was no mention of an extension to my IVA, they just accepted the refusals and i heard nothing more. I have 2 payments left, and have offered an additional £3000 on top in lieu of equity and this is coming out of my redundancy payment, and just for good measure i have had a nasty sting today getting a bill for the wifes car repair of nearly £1000, so that is also coming out of the redundancy as well. I will be glad when this IVA is done. Oh and by the way under no circumstances ever ever buy a Renault Megane 2, it has cost me over £1500 in repairs in 2 years and its only 5 years old, thought it would see the IVA out, and that has been hard to budget for believe me. Get a horse and cart, much more reliable and better built.
The cost of obtaining such verification should be borne as an expense of the IVA, and most reputable brokers will provide evidence of the inavailabilty of funding for you at a modest fee. I know of a good company who will do this for you if this would help.
