www.iva.co.uk

I am currently into the last 6 months of my fifth year, with the clause to re-mortgage. This is where I am confused to how much I am suppose to be getting a re-mortgage for.

My Mortgage is £51,768.73
My Secured loan is £11,565.60
Total outstanding: £63,335.33

According to Zoopla my house is value at £120,000 – I slightly disagree with this…

How much do I need to try and re-mortgage for? Surely the 85% LTV would mean I need to raise a further £38,665 is this correct? With what I paid back along with this would mean I have paid everything I owed plus probably another £30,000 on top!?

Can someone advise please.

Currently the amount is a moot point as you are very unlikely to be able to remortgage so will get a 12 month extension. Some firms will offer (sometimes quite forcibly) a secured loan, but, unless you are on a post 2014 Protocol, they cannot force you to take this option. A remortgage and a secured loan are not the same thing. However, if a remortgage was available, the secured loan would probably be cheaper in the long run.

Zoopla usually overvalue, but there is enough equity to be confident the release clause will be triggered. But using that valuation to work out amounts. Most firms do it this way:

Value £120,000 x 85% = £102,000 Less lending of £63,335 leaves equity of £38,665 on the property. If the house is in joint names and only one of you is in the IVA your share would be 50% of that.

Some will work it out this way:

Value £120,000 less lending of £63,335 = £56,665 x 85% give equity of £48,165

This is all subject to a ceiling of the total original debt, plus fee and possible statutory interest.

It seems however it is calculated you have enough to trigger the presumed 12 month extension that applies to your IVA terms.