www.iva.co.uk

My husband and I are divorcing, we have an IVA for our debts which has been running for 3 years. My new partner and I wish to buy my husband out of our house, and with the money raised wish to offer the IVA a settlement figure to clear it. We have a shared ownership property with a 30% share, so equity is not much but hopefully will be enough for them to accept. However, as we need to remortgage, I am finding it hard trying to find a company that will offer someone in an IVA a mortgage on a shared ownership house. Any ideas?? I know we have to gain permission to sell or make amendments from our IP, but before asking we need to know if its possible to get a new mortgage from anywhere. Any advice would be great.

lisa.c

As you know your IP should be consulted first, with regard to shared ownership remortgaging it is possible for those in an IVA.Tony

Does your house form any part of the IVA?

I think that I am correct in saying that the only way you can remortgage is if you buy out the shared ownership element as well - Tony is this correct?

If so, you are likely to be taking on a much higher mortgage commitment, and should make sure that this is completely affordable, with some leeway if interest rates go up in the future.

[quote]Originally posted by MelanieGiles

I think that I am correct in saying that the only way you can remortgage is if you buy out the shared ownership element as well - Tony is this correct?

If so, you are likely to be taking on a much higher mortgage commitment, and should make sure that this is completely affordable, with some leeway if interest rates go up in the future.
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MelanieGiles wrote:

I think that I am correct in saying that the only way you can remortgage is if you buy out the shared ownership element as well - Tony is this correct?

If so, you are likely to be taking on a much higher mortgage commitment, and should make sure that this is completely affordable, with some leeway if interest rates go up in the future.

Hi, thanks for the reply. The intention was to remortgage the share we have, and use the equity to buy my husband out. The house had been included in the IVA, but as they are aware its shared ownership did say at the end of the agreement that we wouldn`t have to remortgage like they usually require.
I`m confused as to what we can and can`t do, the IVA is holding things up with regards to a normal house / mortgage transfer, as no one is interested in helping us out! Do you think its better to ask the IP his advice then seek financial advice regarding a mortgage if he agrees to the remortgage under my new partners name?

Thanks

Are you sure that you can remortgage just your share? I really don't thing that this is possible, so please check with either your mortgage company or an IFA before taking things any further.

Melanie, you are correct the only way that I have experienced to do this type of remortgage is purchase the shared ownership as well.Tony

Hi, we have a 30% share of the property, which is mortgaged, and the remaining 70% we pay rent on, so are you saying we would have to re-mortgage for 100% of the property and buy the housing association out?? It seems a bit extreme, as we cannot afford to do that, I only need to raise £14,000 out of the £14,500 equity we have on our 30% share...I`m confused!!

I am afraid that this is correct Lisa. Buying a property on shared ownership really does not give you the ability to equity raise if the value increases.