www.iva.co.uk

Our IVA finishes in May this Year :-)but they are asking us to get a redemption certificate for our mortgage and a current valuation. Our house has gone up in value but we do not want to re-mortgage for a number of reasons:- who is going to give us a mortgage if we are in an IVA? if somebody does the interest rate will be ridiculously high (which could potentially push us back into the situation we were in when we filed the IVA) and we do not want to add any more to what is a very high mortgage anyway. Is there anyway we can refuse to re-mortgage? Thanks

I would suggest that you read your paperwork closely with regard to what it says about equity release. You need to understand your obligations and what the agreement actually says.
There are repayment limits to remortgaging which have to be adhered to if you were able to remortgage, which is unlikely. Some IP's will try suggesting secured lending, which cannot be forced upon you if you have the old wording, but is sometimes an agreeable option, depending upon the figures. The most likely outcome, again, depending upon the wording in your arrangement, would be a 12 month extension to your IVA, in lieu of equity.

Hi

If you have equity over the standard minimum you will probably find that a) you won't be able to remortgage and b) as a result you IVA will be extended for 12 months in lieu of the equity.

You need to check your paperwork on this.

Thanks for the advice. Do you know anyone who hasn't had to re-mortgage or extend the IVA to six years? It would be good for us on so many grounds if it finishes after the five years. Not sure I can cope with another 12 months!!

Unless you have no equity then you will have to look at a remortgage (impossible) or they may try and push you down the secured loan route (depending upon what your paperwork says).

You will probably have to extend for the extra year.

Only if you can prove the equity is less than the minimum.


(or get a third party to gift you a lump sum F&F offer and close the IVA early...)

PS just remember that you get to keep your house after all this!