www.iva.co.uk

Hello again,
I would be very grateful if you could answer my questions.
Ques1.My mortgage is on my name only, my wife has signed the document that she can not claim anything if in case the house has to be sold (the occupants consent documents or some thing). When we remortgage in 54th month, does my wife gets any equity. If equity is more than my debts, what happens???
Ques2. How long is the IVA actually for? 5 0r 6 years? If it is 5 years, could i get credit after 5 years? If 6 years could I get credit after 6 years. It looks like my one gonna be 6 years because of less disposable income

Hi and welcome to the forum.
An IVA will remain on your credit file for 6 years from the date it was accepted.
When you have to remortgage in year 4, the increase in your mortgage payment should be no more than 50% of your IVA monthly contribution

Hi
I think that for remortgage purposes you will have 100% of any equity so will be asked to release part of this.
Remember it will all come down to affordability when trying to remortgage and you will never pay back more than your original debt and IP fees.
Regards

Hi.

From the sound of it you have made and documented the decision that your wife is not to have any beneficial interest in your home. Therefore any remortgage for the equity release required in the final year of your IVA will be for 85% of the total equity in the property, subject to affordability as stated by Mrs Skint.

If you are unable to obtain a remortgage, then it is possible to extend your arrangement by another year in order to compensate your creditors for the equity in the house.

If the value of your home has risen over the term of the arrangement, so that the equity available is more than your debts, you will only be required to remortgage to release sufficient money to pay your creditors 100p in the £ plus the expenses of the arrangement.

You will not be able to take any more credit whilst the arrangement is still running - whether or not this will be 5 or 6 years will depend on the offer you are making to your creditors. As Mrs Skint also says, the IVA will show on your credit rating for six years from the day it is approved, whilst this is not a bar to you getting further credit once the arrangement has been completed, it will certainly make it more difficult.