www.iva.co.uk

Hi, We have just been accepted on an IVA and have the usual 54 month clause about releasing some of our equity in our home if there is any.
We both have to release £5000 each if it is feasable as detailed in our report.
We currently have gone onto interest only mortgage with NR for the five years that our IVA will run, then we need to go back onto repayment which will vertually double our mortgage, but as our IVA should be finished by then it is not a problem.
We have a fixed rate at 4.99% till 2017, we managed to get a 15 year fixed rate.
My questions are
1. My husband earns quite a good quarterly commission which we get to keep half, if we saved up enough could we use that to pay our equity amount
2. Could we take a second mortgage for the equity release so that we would not lose our fixed rate.

Kirsty

Hey Kirsty, there is a meeting tonight so it's a little quiet but I'm sure an expert will be along tomorrow to answer your questions, you are in the right place for good advice. Viki X

Thankyou for your reply, I hope everyone had a good time at the meeting in Pompy last night and are enjoying the sunshine now. Look forward to hearing from an expert soon.

Kirsty

Hi
Yes you could use any saved money to cover the equity release or take a second charge.
What a great mortgage rate and a very sensible decision to fix it for 15 years
Good luck
Regards

You lucky people! That is better than my own interest rate! And just to echo Andy's advice that savings can certainly be used to buy out the equity as you will not want to jeopardise that deal.

Thankyou for that, it has put my mind at rest, I know we only have made two payments but I was worrying about losing our mortgage rate in 5 years time as the fixed rate ends in 12 years time, just 3 years before our mortgage does.
I am so glad I found this site as many money sites have a dim view of IVAs, but in our case and I am sure many others it is the best thing we have ever done, no more worrying about creditors calling and no nasty letters. We will end up vertually paying all our debt too.
Kirsty

Hi
A great result for all.
IVAs are an excellent solution for both parties concerned when used in the correct circumstances
Regards