www.iva.co.uk

We are coming to the end of year 4 of our IVA and in about 6 months time will need to look at whether we can remortgage to release equity ("joint" IVA and joint house ownership and mortgage). In the meantime, our fixed rate on our mortgage has just expired and we have been offered another fix which will bring down monthly mortgage payments but means a penalty of several thousand added to the mortgage debt if we pay off the mortgage fully in the next few years (eg if we do are able to get a full remortgage - unlikely? - as opposed to a "top up" at the 54 mth point). We have a fair bit of equity in the property so won't benefit from the 85% LTV rule. Are we able to go ahead with re-fixing the rate (which we want to do in case interest rates rise as expected) or do we have to wait until after we've tried to remortgage at the 54 month point? (by which time interest rates may have gone up). Advice appreciated asap please as our mortgage company only guarantee offers for a very short period and we know there's no point in asking our IVA company the question as they struggle to deal with even simple questions.

Hi,

You are unlikely to be able to remortgage for the IVA but you might be asked to take out a secured loan instead, check your paperwork to see what it says about that.

There is nothing to stop you refixing your mortgage if you want to.

If you are going to get an extension anyway I see no problem with fixing again now. However the savings from the new deal could mean increased payments for the next two years depending on the terms of your IVA. Perhaps now would be a time to try a full and final settlement if you can raise a lump sum. Friends or family is the cheapest method but you could also consider a secured loan if you really want to get out of the IVA.