www.iva.co.uk

We have a mortgage that finishes in 6 years time but the IVA says that in the last year of our IVA we have to do a 'remortgage' and that '85% equity value' will have to be contributed at that time.
I don't understand this and thought that the payments would just stay the same more or less till the IVA was done?

Hi,

Your payments can vary depending on your income and expenditue.

If you have to remortgage (which is highly unlikely at the moment) then normally the IVA will continue on for 12 months in lieu of that equity. If you do manage to release money then this will have to be paid across.

Does your paperwork mention anything about a secured loan or 3rd party funds?

I meant to ask - do you have any equity in the property? If no then your IVA will complete on time.

You will need to get a valuation done nearer the time.

If you have equity you could be expected to remortgage or take out a secured loan come the end of the IVA. This should have been explained to you at the time and in theory you could be obliged to take out a new mortgage up to retirement age and pay a lump sum into the IVA. Unlikely but possible so it should have been clearly explained.

You will probably show you can;'t remortgage and the extension will apply instead. That's if you can't prove you have less than the standard £5k minimum equitable interest.