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Posted: Thu Jul 28, 2011 11:32 am
by rosalyn
Been reading my iva terms. Mine states 60 monthly payments but the term is 67? Whatscthat all about?
Also it says year four a mortgage quote to be obtained of 85 of something to value? Realistically I won't have any equity. House is prob worth 125 but with secured loan we owe 150ish
Posted: Thu Jul 28, 2011 11:36 am
by kallis3
Your remortgage clause means that you have to try and get a loan of 85% loan to value which isn't going to happen whether you have equity or not.
Some companies do quote extra months - I think it is to do with the tidying up a the end. You will only make 60 payments though.
If you're not sure then speak to your IP company and ask them to clarify this for you.
Posted: Thu Jul 28, 2011 11:39 am
by rosalyn
So what does this mean about the 85% then? I don't understand? Will I have to find extra money?
Posted: Thu Jul 28, 2011 11:39 am
by Adam Davies
Hi
Jan is correct, the extra few months are to allow time to conclude IVA and possibly to allow for any missed payments.
Did your IVA company not clearly explain the remortgage clause
Regards
Posted: Thu Jul 28, 2011 11:40 am
by rosalyn
haven't missed any payments nor any hols
Posted: Thu Jul 28, 2011 11:41 am
by rosalyn
they did but remember them saying due to having no equity and a secured loan we'd be fine and not have to pay anything?
Posted: Thu Jul 28, 2011 11:43 am
by Adam Davies
Hi
You will have to try and remortgage upto 85% of the value of your house, however it is likely that you will not be able to do this and more likely that your IVA may extend by 12 months
Regards
Posted: Thu Jul 28, 2011 11:46 am
by rosalyn
so an extra twelve months, great news........
Posted: Thu Jul 28, 2011 11:48 am
by Adam Davies
Hi
Possibly but not certain. Expect the worse and it can only get better
Regards
Posted: Thu Jul 28, 2011 11:48 am
by rosalyn
Appreciate your reply Andy I'll ring them and check
Posted: Thu Jul 28, 2011 11:53 am
by rosalyn
And Jan sorry
Posted: Thu Jul 28, 2011 11:55 am
by kallis3
Nothing to apologise for Rosalyn.
Posted: Thu Jul 28, 2011 11:59 am
by plasticdaft
The 85% thing is the LTV or loan to value(a percentage of amount of loan to the value of house). Better to know now rather than get a surprise later on,but I would expect to have to extend 12 months in lieu of equity. Your paperwork should detail what happens in the event of not being able to release equity,but is often not very well explained by the not as good IP's for obvious reasons!!
Paul
Posted: Thu Jul 28, 2011 12:00 pm
by rosalyn
it's all jargon to me to be honest
Posted: Thu Jul 28, 2011 12:02 pm
by plasticdaft
It is often the jargon thats hardest to understand but has most information within its confusing terms!!!
Paul