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Posted: Tue Oct 28, 2008 3:31 pm
by dianenandy
I'm hoping that someone out there can give me some advice. I currently owe around £40k in outstanding loans, credit cards which are in my sole name. My wife and I have a mortgage which leaves us with £69k equity using last years valuation. The unsecured debts are increasing month by month as my outgoings far outweigh the money we have coming in. I am considering an IVA as I do not want to loose my home. I understand the outgoing payments can be negotiated with the financial institutions, how does this affect my mortgage payments I am happy to continue these and can afford them on a month by month basis? can you please explain the equity release in years 4 and 5 that I have read about, my wife and I are in our mid 50's we have our mortgage on Capital repayment to take us to 65. How will this affect us? also as the unsecured debt is only in my sole name will it be an issue? Please help
Posted: Tue Oct 28, 2008 3:40 pm
by rayb
Hi,
I see from your post that you have around £69K as equity and therefore you are not technically insolvent. Could you not contact your Mortgage provider to see if you could release any of this equity to clear your debts??
Posted: Tue Oct 28, 2008 3:46 pm
by David Mond
Hi and welcome to the site.
Your query is not uncommon. If all your debts of loans and credit cards are in your sole name then:
If in an IVA in the final year of the proposal 85% of your net equitable interest - so in your example 50% x £69k x 85% would be approx £29k - would have to be promised into your IVA by way of-remortgage or sale (?).
The cost of that will also be dependent on Loan to Value and probable current value (which is less today as last years values today have gone down) or the value in any final year might go up or down.
Different advice if some of the debts are jointly held.
Posted: Tue Oct 28, 2008 3:49 pm
by rayb
David,
As they have that amount of equity or maybe less now they would not qualify for an IVA anyway as they have equity that would service the debt now???
Please clarify
Posted: Tue Oct 28, 2008 4:18 pm
by David Mond
His equity share not hers so he possibly qualifies - that is why need to know whether his other debts contain any joint ones and if so how much?
Posted: Tue Oct 28, 2008 9:27 pm
by MelanieGiles
Could you also post details of the current value of your property, and the amount you owe to the mortgage company at present.