www.iva.co.uk

Hi
Currently in 4th year so equity release clause now kicks in, the clause is only on my half of the IVA not my husbands so they cannot touch 50% of the equity, have had 2 valuations so far £84,950 and £89,950 (optimistic!) outstanding on mortgage is £68,000.
What can they do in this situation please?? Surely I wouldn't be able to re-mortgage in any circumstances?
All replies greatly welcomed!!

Thanks

Hi and welcome!
Not an expert on this but can tell you about our equity release. Our agreement states that we have to do all possible to try to release any equity but at no more than 85% loan to value. However I checked and had it confirmed that if we cannot do this - ie. no equity which is how we stand at the moment, or cannot get a remortgage due to bad credit rating etc - then that would be that. We are already doing a 6 year iva so I checked and it would not involve an extra year being added on if we couldn't remortgage.

If I were you I would go over your agreement again and then check it with your IP ) good luck hope it works out ok for you and sure an expert will be along soon to advise beter than I could hope to )

hmmm hopefully good news then as we are only in a 5 year IVA but I thought they always had the possibility of extending to 6 year term to re-coup some of the equity? Hopefully someone will be able to confirm for me.
Thanks for your help

You need to hand the property inforamation over to your IP and seek their advice. A creditors meeting may have to be called, which could result in you being asked to pay for another year.

can they extend it past 6 years or is that the maximum term please?

thanks

It is normally a maximum of six years and could be shorter if your contributions reach the equity level beforehand.

Hi

I am a Manchester based mortgage broker and i have access to a panel of lenders who will remortgage even if you are still serving your IVA.

If you would like to discuss your options more then please contact me


*Link removed - advertising not allowed on the forum.*

It's a shame that details of mortgage brokers that can help are not more readily available, my 4th year equity release clause is due to kick in and I haven't got a clue who to go to for a remortgage, the high street banks are obviously out of the question so how do you know which sub prime lenders are reputable and which ones should be avoided like the plague.
I'm expecting to be instructed to try for a remortgage when I get my annual report which is imminent.
Any advice would be appreciated.

I think that if you are in an IVA and looking for a remortgage you will be sorely disappointed. At the moment I don't think that there are any lenders who would touch anyone in an IVA to be honest - which is stupid when you think that you have no debts, and probably an impeccable payment record over the last four years.

I never thought of it like that but you are absolutely right, I have never missed a payment to my IVA, all my regular bills are paid by direct debit and whatever is left I draw in cash which goes towards household expenses and building a contingency for emergencies, being in an IVA has taught me how to live within my means.
Picking up on Mel's reply that lenders wont touch anyone in an IVA just confirms that 4th year equity release is a 'paper exercise', however the other point about "no debts and impeccable payment record" makes me feel quite proud and a little bit smug.
Thanks for that Mel, you've made my day[:D][:D][:D][:D][:D][:D]

MelanieGiles wrote:

I think that if you are in an IVA and looking for a remortgage you will be sorely disappointed. At the moment I don't think that there are any lenders who would touch anyone in an IVA to be honest - which is stupid when you think that you have no debts, and probably an impeccable payment record over the last four years.

I always aim to please!!!!

There are some sub prime lenders left in the market that will re mortgage some one who is in a current IVA although many will only do this on a second charge basis and the fee's rates are quite high. If you have finished your IVA then a first charge re mortgage with a sub prime lender is certainly possible. I have just got a case through for a client who has recently finished his IVA and i managed to get him a Great high street deal so don't give up as there are always lenders who will consider your case no matter how bad your credit rating is.

Lee Hunt
Mortgage Adviser
CeMap

So getting a "re-mortgage" which does not involve a second separate secured charge, is actually not possible at present Lee?

I assume a second charge is like a secured loan on the property?

I'm glad that you have made an input to the site Lee, although from what you have said, for the man in the street in an IVA, taking a remortgage from one of these lenders would be like putting a shot gun to your head financially.

On the converse it's great to see that post IVA people can get high street rates with the right broker.

And on another note, I know someone who recently remortgaged to the tune on £200,000, not in IVA but has debt and she got this via a broker, not sure which lender but she lied on the application and said that she had no kids, when she has 3 and the broker advocated this and called it a 'fast track' mortgage.

I think it's wrong and will end in tears as I know that the extra remortgage money has already been spent and not used to pay off debt as it was meant to be.