www.iva.co.uk

I am in my 5th year and need to re mortgage. Information please about equity release and what the next steps are?

Hi and welcome,

Firstly, check exactly what it says on your paperwork as to what you need to do.

Usually you are expected to try and remortgage if you have any equity which is pretty nigh impossible. Some companies are trying to get people to take out secured loans.

Get your house valued first of all to see if there is any equity.

A lot depends on which company you are with.

Freeman Jones.

I'm still confused! I have house 130,000. Secured loan of 31,000 and mortgage of 35,000. I have paid in approx 42k of 93k debt. If my attempt to remortgage is successful, what happens? Does my new mortgage wipe out the existing mortgage and existing secured loan? What happens? Sorry folks I'm so confused.

It won't wipe out your existing mortgage as you will only have to try and do 85% LTV.

So what will it wipe out? 130,000 house value. 85% is 110,500. Existing secured loan and mortgage is 66k so potentially approx 44k equity. Would I just have another mortgage for this? Pay 775 secured loan and 730 mortgage and 1200 IVA per month. Any indication would I be better or worse off? Would I still have to pay the 775 and 730 and have new mortgage fr the 44k equity? Just need it explaining basic ;(( sorry for being a pain !

You are not a pain at all!

All it will do (if you needed to do one) would be to finish the IVA but you would still have a loan to pay off.

I know it would finish the IVA, but what about the 66k I owe currently with secured loan and mortgage? I just need to know basically what happens to them. Are they paid off and rolled into one with new mortgage? Also my existing IP company are attempting a remortgage with their sister company? Does that mean that they'll probably accept them as they'll get more money overall? Thanks Kallis 3, really appreciate it.

I have 4 years left of secured loan and mortgage. Would I continue to pay them and they will finish and then on top take out mortgage for the 40k equity !??

They will continue seperately and any secured loan will be in addition.

There is an expert from FJ who post on here, Steven Hewitt - contact him via the expert link on the left hand side of the page. He should be able to help you.

Thank you so much Kallis. So to confirm my existing secured loan and mortgage will finish on their original time and it will only be the remortgage of the equity (ie 40k in this case) that will be extra? Hence in 4 years when the existing loan and mortgage are finished, I'll be those monthly payment amounts better off?

Your existing mortgage and secured loan are only included for I&E purposes and won't be affected.

Hopefully you won't be able to remortgage and will just have the extra twelve months to pay. It does all depend on what it says on your original paperwork.

I strongly suggest that you email Steven Hewitt (if he doesn't pick up on this tomorrow) as he will be able to sort your problems out.

I think its all hypothetical as I understand no one with IVA on credit file can remortgage unless they have a ridiculously low LTV and amazing provider and even then, that's at a push !

Remortgages are almost impossible to get so the only real option is a secured loan if you must release equity. However you may be able to extend the IVA for a year which would bring in almost £15,000 and I am sure creditors would be happy with that option.

I assume you must be reaching retirement age if only four years are left on the mortgage and existing secured loan so any refinancing would be difficult anyway.

If you do look at getting a secured loan to clear the IVA it is likely the lender will want the existing second charge cleared but your mortgage will remain. This may work out cheaper depending on rates so you could speak to Shaun Vickery who has access to these type of products and see whether it would be worth your while.