Early Settlement

[jillybean]

We are 28 months into our IVA and things are so tight at the moment it's causing so much tension between my husband and I. Xmas was a struggle and we subsequently ended up missing two IVA payments and then entering into an arrangement with our mortgage company. My question is if we carry on paying into the IVA for the next 28 months, we then have a mortgage release in year 5 we will have repaid in total approx 31k - we currently have about 43k equity in our house, both on good incomes could we re mortgage and offer an early settlement?[:(]

[jpj]

Probably depends on the value of your house. Mortgage lenders dont usually lend over 85% loan to value when your in an IVA.

[MelanieGiles]

That will depend upon the exact terms of your proposal. What does it say with regard to equity release, and is it limited to a value of no more than 85% loan to value which is usual these days.

[jillybean]

Lump sum of equity to be introduced in the fifth year is 19,876

[MelanieGiles]

Is it stipulated to be exactly that sum, or is there a formula behind it?

[jillybean]

I have just read over and it is definately that exact sum.

[MelanieGiles]

OK - could you also confirm the amount that you are paying in each month please.

[jillybean]

380 set repayment - 430 now because of the two missed payments.

[MelanieGiles]

I would have thought that you would need to raise approximately £30,000, and would have thought this would be difficult on grounds of affordability.

[jillybean]

Is that 30k offer on final settlement, if so we definately have this in our property but like you previously advised would we struggle to find a lender?

[Adam Davies]

Hi
What about selling up and down sizing and offering the 30k as a full and final ?
Regards

[jillybean]

Thank you for the advice but with house's not moving at the moment I really do feel the need to try and sort something sooner rather than later and surely it would be imposible to get a new mortgage with the IVA against us and no deposit?

[Adam Davies]

Hi
You would need at least a 10-15% deposit.
Selling up and renting is an option for you.
Regards