www.iva.co.uk

Hello Again!

We are in the last year of my IVA - 12 payments to make!! We have to release money from our mortgage this year, although we haven't heard from our IVA practitioner! Is it likely that my current mortgage company will remortgage it for me? They are Mortgage Express. What happens if they won't?

Many thanks,

Natalie

Hi Nat,

If you are not able to remortgage, then it is possible that you may have to continue for a further twelve months.

Exactly what does it say in your proposal/Chairmans report?

Hi, it states the amount that has to be released in the final year then says that if we are unable to release this the IVA can be continued for a further year. Really don't want to do this if we can help it though!! Really need to get it over and done with as soon as possible!!!

Natalie

Unless you have a loan to value ratio of less than 70%, I would prepare yourself for that further year. In the long run this may be a better option, as if you are forced to raise money by way of a re-mortgage this loan will continue far beyond that additional year.

In April I will be into my 4th year which is when my equity release clause is supposed to kick in, I am absolutely dreading it, I don't have enough equity to raise 85% LTV so I guess my IP will be going back to my creditors and telling them that there isn't any equity available. All my IVA states is that if I am unable to re mortgage a variation meeting will be called, it doesn't say anything about 12 extra payments in lieu of remortgage.
The uncertainty of this subject is really worrying, the rules seem to be constantly changing. [V][V][V]

Your IP is extremely optimistic if he/she thinks that banks are going to start lending again in the severe sub-prime marketplace. There are still insufficient funds available to lend generally, which means that lenders can afford to be very choosy.

Personally I think that the six year option is far better for you, as at least you can see and end to the debts in a relatively short period of time, compared the the extended payments you would have to pay if you took out an increased mortgage.

Hi!

I spoke to the Mortgage adviser yesterday, he is going to call me back today to let me know if anyone is prepared to lend us the extra money - not looking good though! We are preparing for year 6!!

I found that I'm much happier since speaking to him as I realised that there is support out there for us after the IVA, he will help us find a decent mortgage later down the line. He's is currently looking at our utilities bills, insurances etc to see if they can be reduced further....we are so penny concious though that we regularly go through and do this ourselves.

I'll update once I have the news....good or bad!!

N x

Hello!

Quick update....Mortgage adviser unable to help, there was a lender that was interested in lending to us but we were unable to get the valuation we needed...
Just really unfortunate timing I think with the current state of the economy.

Waiting to hear back from our IP now to see what the next step is...

N x

Hi Nat,

Bad news on the remortgage, I think you could possibly be looking at an extension.

Let us know what your IP says.

Hi Kallis,

Hopefully I will hear back from them today, I'll keep you posted.

Nat

Hello!!! Spoken to IP and have decided to wait until September then propose to the creditors that we continue with our payments for an additional 12 months...I know that this is the best option for us but really disappointed that we have to go into the 6th year

Hi Nat, not what you wanted but you know now that after the additional 12 months it will be definitely the end.

I wish you a smooth journey for the remainder of your IVA, I feel that there will be a few of us in this position unless there is a big change ahead in the mortgage world.

I know this is a long way of for us at present, but I kinda hope ours is still in negative equity when the time comes then should not have to go the extra year.

As Mel has pointed out,it may actually be beneficial to not get a remortgage and to extend into a 6th year because at the end of year 6 your credit file will be clear and you can look at mainstream lenders rather than get ripped off in the sub prime market.
If you do get an expensive remortgage you have to remember that there will be tie ins as well and will cost you more in the long run.

Paul

I doubt we will be able to remortgage due to our age, so an extra 12 months will be ok with me.