www.iva.co.uk

Hi all,

IVA just being proposed, but as far as possible equity release from re-mortgaging my house is concerned in year 4, I have a part interest only / part repayment mortgage and the mortgage terms state that I have to pay back the lender 35% of the increase in value of the property when redeeming mortgage.

How would creditors look on this - do you think they would want to introduce some kind of terms as mortgage only part repayment (therefore equity not increasing as much as would if 100% repayment)- and how are redemption penalties such as the 35% of increase in property value looked upon - would this simply be deducted from the equity release amount if I were able to remortgage (presumably you would not be expected to fids this yourself!)

Thanks
Chris

We'll keep this bumped up for the professionals as I'm sorry I don't know the answer to this.

If those are the mortgage terms then so be it. Your ability to raise money may be hampered by this covenant, but that could actually work to your advantage in the long run.

Make sure that your IP fully discloses this matter when presenting your proposals to creditors.