www.iva.co.uk

Hi
just a query, is it possible to get a remortgage in year 3 and offer a full and final settlement?

Anything is possible Loz - but you will need your IP's permission, a bunch of creditors who say yes at a variation meeting, and a mortgage company to lend you the money. The latter factor will probably be the hardest to obtain.

The key area is going to be loan to value.

The mortgage lenders are aware this specific area of lending has always been very lucrative. I think it will take the odd one or two to take the plunge and others will follow.

Some lenders were too heavily geared and couldn`t manage their mortgage book as well as they should.

It should be possible to get a 3rd year remortgage as it is at the moment but lending criteria and particularly loan to value is massively important, and probably will be for a while.

Tonoy - what is the maximum loan to value you can get for a client in an IVA at the moment - and what sort of interest rate could someone expect to pay?

We got a remortgage deal of about 73% LTV (if i remember rightly) and offered a F&F which was accepted.

That was of course, just before things in the mortgage market turned a bit bleak.

Melanie 75% seems to be the norm at the moment, but not every case is the same.

I did notice after the rate announcement a couple of emails promoting 90% deals at mid 6%`s but that wasn`t for those using IVA`s.

The point I am trying to make is as soon as the rate announcement was made lenders are trying to restrucure products to pull in business. I think it will take a lender to make the move and others will follow.

I had this specific conversation with a couple of others who have been doing this as long as myself and the general consensus was to expect things to be slowly improving mid 2009.

Loan to value seems to be key, but lenders will want this business again, the margins are more appealing to them. It`s just a case of sitting tight. Tony

With Interest rates cut by 1.5% (a new record) I am sure the mortgage market will begin to move forward again.

Has there ever been such a large reduction in interest rates in your knowledge David?

1955

It's good to see you back on the forum Tony. I hope you're well x

yes it dropped by 2% when thatcher took over

That is amazing - almost history in the making and it goes to show just how serious the credit crunch has been to the UK and world economy. I can remember watching the TV back last year when the queues were outside Northern Rock branches and thinking we were in for a short period of difficulty, but I am sure most people would not have predicted the enormity of what has happened in recent months.

I do wonder what the media will do when the credit crunch (makes me think of biscuits!) is over - I'm sure they're enjoying making people panic.

Melvyn King should have been shot in the way he handled the Northern Rock debacle! It should have been done overnight as they did with Bear Sterns in the States. Problem is you have old fogies who don't realise what they are doing and advised by idiots employed in parts of the Civil Service. Everyone has known for a year that we were heading for a recession and King and his internal advisors mis-read all the facts. Roll on the day for the new generation to take control employing brains and none through cronyism!

LOL skip. Credit crunch makes me think of breakfast cereal.