remorgage

[chegs]

Hi,
I havet posted here for a fairly long time, but have kept an avid interest on the posts and to see how people are doing on the hard journey of an IVA and of course the fab advice offered on here. Im am now in month 53 of a 72 IVA and have recently had my house valued and the morgage redemption issued. I do have the equity release clause in my IVA 85%, how much would I need to remorgage for the purpose of the IVA, there is 21k equity in total . Thanks in anticipation for your help, maths is not a strong point !!

[luluj]

Nice to hear from you. My understanding is it will be 85% of £21k = £18,050 (if my maths is right!!)...... Do you have the bit that says what happens if equity cannot be released...does it mention an additional year of pyments ? You may want to address this now so that you know exactly where you stand.
Let us know how you get on.

[esgt1967]

It is my understanding that you take 85% of the value of your property then deduct mortgage/secured lending which leaves the amount of equity. Therefore, if valuation is £100k, 85% = £85k and if mortgage is, say, £75k, you will have equity remaining of £10k. The maximum you will need to pay into the IVA (again, this is my understanding only as I have several years to go until this point!) is 100% of the amount owed, so in the above exmample, if at the end of the IVA you would owe more than £10k, the whole amount of the equity would need to be introduced into the IVA (if you were able to remortgage, that is).