www.iva.co.uk

After having an IVA for just over 3 years I have only just discovered this forum and have found the advice very helpful but would like to see if anyone could help with my specific scenario...

I have had an IVA with BE since February 2006 and it is due to end in January 2011. My total outstanding debt was £40,000 and so far I have paid back £13,500. Over the remaining 21 months I am due to pay back a further £7,200 plus an equity release of £13,000 at the end of this year.

However, due to the current economic climate I estimate I will only have approx £8,000 of equity in my property by this point. Also, my current mortgage lender has recently been nationalised which means they will not let us remortgage or release equity. Therefore I would only be able to release equity by remortgaging with another lender and I don't feel any lender would consider my application in my current position.

I would like to make an offer to settle my IVA early and wonder if anyone can offer advice as to how much is a reasonable offer.

Assuming I cannot release any equity I was thinking of offering around £7000 which means in theory they would be getting the remaining 21 months of payments up front.

Does this seem realistic? Any advice would be appreciated. Thanks

Hi and welcome to the forum.

I don't know if that would be a good offer or not, but one of the professionals will be along to assist later.

This may be acceptable to your creditors, as everyone with equity release provisions are currently having difficulty in re-mortgaging. Where would you be getting the money from to settle?

Thanks for your reply.

The money would be a gift from my employer.

If the offer is accepted and when completed, do you know how long the IVA will stay on my credit file as I am wondering how long I will have to wait before attempting to remortgage?

Thanks

It will stay on for six years from the date of the original creditors meeting. This should not stop you from being able to re-mortgage, but it might mean that you would have to pay a higher interest rate in view of the credit risk lenders may still perceive you to be.

Thanks for your advice, much appreciated.

Who is your mortgage with? Northern Rock are now giving mortgages.

It's with Mortgage express.

Regards.

They are owned by Bradford and Bingley I believe and so far as I am aware are not writing new loans at the moment.

As far as I am aware the Government owned mortgage businesses have been told to lend. Who now owns the Mortgage Express mortgage book?