www.iva.co.uk

i am subject to an iva since february and i am repaying 430 a month. I am happy to do this but i have concerns about my home. The land registry have put a hold on my property and i have been informed i must release the equity in it in 4 years time. i am already 63 and my husband 65 and will have to continue working to pay this iva and i cannot continue after thatmy mortgage will be paid about the same time. iwould not be able to pay a remortgage on our income when i give up work so will i have to sell my home then? I feel i might as well do it now although i do not wish to as struggle on working for 5 years and have to sell it anyway. I cannot seem to get an answer to this could you please advise me Thanking you in anticipation.

Hey florence, welcome to the forum. If you can't get a remortgage your IVA may be extended for another year but please hang in there for Melanie as it seems a little odd, considering your ages, that this was never discussed at the beginning. X

What company did you get the IVA with florence, it seems a bit odd to me too. It would seem that an equity release now for a full and final would have been better for you. Although I am no expert, I am suprised you have started an IVA this year given your ages.... and ability to pay for the full term.

Given your ages this ought to have had very careful consideration when you entered into the agreement. What discussions did you actually hold with your IP directly about this very important area?

i was telephoned by a company and as things were pretty bad at that time i acceptedtheir offer to deal with it all.( i was getting desperate to sort it all out) I have not been entirely happy with all that they have done no one to one talk to anyone with any knowledge at all but in saying that they have sorted it all out but i am sure we were ill advised and too much of a hurry on both our parts to sort it out. I do not mind working to pay it but i feel if at he end i have to sell my house or have it tied up for ever then all i have done is incur more debt on arrangement fees etc.

It does sound as if this requirement was not properly explained to you at the time you entered into your IVA. How much equity do you currently have in the property?

Hello Florence,

If you would not be able to afford the new mortgage it is unlikely that you'll find a mortgage lender prepared to offer the increased mortgage. To do so would obviously be irresponsible for all concerned.

Many people in IVA's are and will be unable to fulfill their equity release clauses due to declining property values and reduced lending availability. What happens from there will obviously depend on the attitudes of creditors and IP's though I'm sure provision is now being made for this scenario in most cases (for example a year's extra IVA payments in lieu of equity release).

We have at least £40000 at the moment but owe more than that we tried to remortgage but our lender would not allow us to although we had never missed a mortgage payment so felt iva was the way forward now i am not so sure Although it has certainly taken the pressure of for now

You may be eligible for an equity release scheme, but should take specialist advice from a mortgage broker who understands how these work in order to ensure that your home is protected into the future.

Hi Florence ... like the others have said it would seem as if this wasn't fully explained to you correctly in the beginning.

All I would say is that it is a rapidly changing scene out there at the moment and four years is a long time ... so hang on in there.

Debbie