www.iva.co.uk

Hi We are almost 43 months into a 60 month IVA and have never missed one of the £130/m payments. Our original Debt was around £22,000 with a forecasted total repayment at month 60 of £14,500. We currently have a mortgage of £155,000 on our house which is potentially worth £245,000. we are considering a move up north into a property costing £110,000 so hence my question.
I am considering making an offer of £4000.
17 months + 12 months extension to buy out of the IVA early.( (17+12)x£130=£3770 )
Do you think this would have a chance of being excepted? Of coarse the £4000 would be coming from my parents on the condition that it is used solely to pay off the IVA.
Thank you for any comments.

Hi and welcome,

You do realise that you probably won't be able to get a mortgage whilst you have the IVA, even if you finish early.

If you sell your house, which will have a restriction on it, then any equity will go to the IVA minus legal and estate agents fees.

Hi thanks for your reply. Having done a lot of reading on this forum and others I get the impression that although it appears very hard to get a mortgage while an IVA still shows on your credit score it isn't impossible.
We may have the opportunity to sell our current house and move in with family for a few months. This would potentially leave us with a deposit of 70k to 80k to put down on a 110k house (65%-70% deposit)
EDIT:
If they were to accept a final offer and close the iva can they still leave a restriction on the house?

Are you also aware there is a restriction on your property - so you will need permisson to sell. The IVA will then capture a large slice of equity

I am looking to make an offer to complete the IVA early as I would be unlikely to get a remortgage. Then once the IVA was closed and only then would I be looking to sell up

Agree with Ginger - you will not be allowed the equity in the house other than for expenses. If you can pay back your total debts 100p in the pound plus fees and possible statutory interest then anything else would be yours.

Your IVA will remain on your credit record for the full six years so will flag up warning bells to a potential lender.

Oh good - make sure to have the completion certificate in you hand and the restriction is removed before even attempting to put the house on the market.(may take a few months) That way your equity will be protected

Good idea to hang on - then it will all be yours.

Thanks for your help so far however I am hoping to finish this IVA early. As I am not likely to be granted a remortgage while in an IVA (as you guys have suggested) and definitely wont be selling up just to release equity to hand over to my creditors, I am trying to ascertain an amount if any that the creditors would consider to close the case

To close early the usual offer for a full and final is the monthly amount times the number of payments left, plus 12 months if there is enough equity to trigger an extension.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

To close early the usual offer for a full and final is the monthly amount times the number of payments left, plus 12 months if there is enough equity to trigger an extension.

So based on your comment and the original figures I detailed in my origianl post (( 17 months + 12 months ext ) 29 x £130 = £3770) Would an offer of £4000 have a good chance of being accepted?

I would say so, yes. But would add that I have seen very low offers accepted as well as generous ones refused -- but I would think it has every chance.

Thank you, I think my next step would be to get a valuation done on the house to see if it is worth proceeding then I will have a chat with my IP
Thank you for your opinions guys

I haven't read all the replies so apologies if I am repeating something. An offer of £3,770 is very attractive as it is equal to what creditors would receive in the normal course (unless a variation charge applies - usually £500) so would like to think that creditors would accept it.

The mortgage position is a different matter though - speak to Ryan or Shaun for expert advice but unlikely that you will be able to do this unless and until you have your CC and the 6 year mark has passed.