www.iva.co.uk

Hi
Iva says we need to remortgage for £3391.42,
Can anyone advise on how to go about remortgageing.
Thanks

Hi,

You won't be able to remortgage - you will need to get a couple of rejection letters.

Have you had a valuation done? If not then I suggest you do so as you may find yours is lower than the IVA company.

Do you agree with the equity calculations ? Do you have the £5k de minimis clause in the arrangement ?

Hello
Yes we have the £5000.00 clause
House valued by estate agent 80000.00
Mortgage and secured loan debt is 64608.58.
Have had alerted from iva stating that 85% actual interest in property is 6541.35."as outlined within your arrangement, you will need to contact a mortgage provider and try and release up to £1695.71. In doing so your monthly mortgage payments should not increase by more than £366.90.other option is to pay offer up to 12 extra payments of your surplus income to pay the equivalent of your 85% actual interest.
Iva is joint with hubby and both letters say same ie £1695.71 each.
As you may gather I am totally confused to say the least.
Thanks in advance

No idea how they came by their figures but you won't be able to release the money anyway so it will probably continue on for a further 12 months.

OK -- this is how I read it -- they have used the method whereby they calculate total equity and then ask for 85% of the equitable interest -- where they get £1695.71 from I have no idea -- but it is the lesser figure, so run with it.

I assume your monthly payment is in the realms of £732 per month. So, if you offer 12 months extension -- you will have paid the sums they are after, £1695.71 x 2 = £3391.42, in 4 and a half months, at which time the IVA will end.

So it won't be for 12 months? That's great thank you so much for your insight in this

In most agreements the extension shouldn't yield more than the equity required ... however, some IP's are being quite "liberal" with their interpretations of, what are, clumsily written clauses.

If I were in your shoes I would have a word with your IP along the lines of: "So, just to be sure, you require us to extend long enough to cover the amount requested, that is £3391.42 in total for both arrangements. This, in reality will be 4 full months and a final payment of £465 in month 5".

Get confirmation in writing.

Good advice from Foggy.

Confused #128533; spoken to iva today as can't remortgage we both have to extend to pay off 6541.00 each
Really confused #128533;

So, what they are saying is, if you can remortgage they will accept the 1600-odd each, but if you extend they want the full 12 months repayments -- the extension is 12 months at the normal rate --- not until the equity is repaid, so they will get £8784. If that is the case they are unfairly penalising you for something beyond your control!

Where did they get the 1600-odd figure from ?

I think you are right Foggy. If the poster can remortgage to 85% loan to value this would raise £3391 between them or £1696 each. As they cannot raise the finance they are expected to introduce 85% of their equitable interest in the property which equates to £6541 each. As they cannot raise this the IP is extending the IVA for twelve months which will cost them over £8,000.

These modifications and the full implications should have been explained at the time and where they were conflicting the IP should have sought to have them removed. The intention seems to always have been that where a property was mortgaged to 85% or above then it was to be excluded and this may have been told to the debtors at the time of the meeting.

Personally I would ask for a meeting with the IP and check through all the conversations had especially the ones explaining the proposal and the one from the time of the meeting of creditors. It is not surprising that the poster is confused and this should not be the case after all this time. The IP should seriously consider calling a meeting to allow this to close as it would under current conditions and there certainly is no harm in asking.

The only other alternative I can see is if the poster contact Shaun Vickery to see if they can raise the remortgage amount by way of a secured loan. This would at least get them out of the IVA now for a lot less than 12 extra months at over £700 per month!

I agree, Michael -- yes, a word with Shaun might be a good way forward.

Thanks for the replies, I have just had an email from iva.
We are in joint I've mine I need to make 9 additional payments and the other half 12, mine will have paid £6451. In the 9 extra payments and partner paying 215.00 month for 12 months so won't be paying all of the 6451. So will knuckle down until January 2018 mine will end and partners in April 2018.

They won't be joint but will be interlocking. At least you know where you stand now.