www.iva.co.uk

We have just sent off our mortgage redemption figure and house valuation. We have today received notification that we have £113,495.29 equity in our property. We have been advised that this is 85% loan to value in line with our proposal. We have been advised that we need to attempt to remortgage up to £113,495.29. Well I do not understand can someone clarify - when applying for a re-mortgage on line am I applying for this amount PLUS our existing outstanding mortgage ie: £113,495.29 plus £123,000 - total £236,495.29. When I replied to my case officer and asked this question she re-iterated 'the amount you need to borrow is £113,495.29 - I'mconfused what about the existing outstanding mortgage - I thought a re-mortgage was paying off the original mortgage and taking out another mortgage with additional funds borrowed on top - please can someone clarify- thank you

sorry i seem to have posted twice.

Duplicate post deleted.

Thank you Foggy.

My understanding is that you will need to replace your current mortgage with one big enough to release the equity as well as cover the amount outstanding. There should also be other limits on the borrowing in your proposal, such as the repayment and term.

It is unlikely that you would be able to remortgage -- what alternative does your proposal give (if any)?

Who are you with, Alfie ?

We are with payplan and our proposal states that if we cannot re-mortgage we pay for a further 12 months. The confusion is that I believed like you that we would need to re-mortgage for the outstanding mortgage (£123000) and the 85% LTV Equity (£114,000) - ie: £237000. When I questioned very clearly today with Payplan FOUR times that I needed to borrow £237000 they just kept coming back with the answer 'you need to borrow £114000'- I am confused as to the amount to put in on my on line application for a re-mortgage.

We do not understand why we would need to borrow £114,000 when this is over four times our original debts when entering the iva and we have been paying for four years.

What is the value of your property and what is your current mortgage balance?

You only need to borrow up to the outstanding amount of original debt, plus fees and possibly (probably, in Payplan's case) 8% statutory interest.

It sounds like (as usual with them also) you are dealing with an unqualified teleworker who is citing "rules" parrot fashion without understanding them.

I do not know what terms and conditions Payplan use, but, in many cases, the resulting repayment should be limited so as not to add more than 50% of your usual IVA payment to the mortgage payment, nor should you have to extend your term. This, in itself will limit the amount you attempt to borrow.

Insist on speaking to the IP directly, or at least someone with whom you can have a meaningful dialogue.

Ok thank you Foggy -I thought it was me but I kept getting back on line e-mails stating 'you need to re-mortgage up to £114,000' and no matter how I explained my question the response came back as above - a one line answer!