www.iva.co.uk

My IVA commenced in Oct 2007 and has an equity release in the 4th year. I am happy to say that in the beginning it was quite difficult but became easier to time passed. I think its one of the best decision in my life.

My current fixed rate mortgage is ending Jan 2011. My understanding is that I can start the remortgage process seeking to release the equity sometimes in Nov 2010. Please correct me if I am wrong.

In the current market you will find it extremely hard to secure a remortgage and will most likely have your IVA extended by 12 months in lieu of equity.

You are correct dates wise in that you could attempt to release the equity once you enter your 4th year.

Paul

we started our iva in 2005 and recently had our 5th year equity valuation .we are negative equity and so have to go for a 6th year.

If you are in negative equity do you have to extend another year?

It all depends on what it says in your proposal/chairmans report. The majority of us have that clause now in our IVA.

Check your report or have a word with your IP.

Thank you all for your valuable response. I'm currently waiting for the outcome of my annual 3rd annual review and then proceed with the remortgage. My agreement states:

In the 4th year of the Arrangement an open market valuation of the property must be provided to the Supervisor, together with a mortgage redemption figure. The debtor must obtain a minimum of 2 offers of re-mortgage which address the debtor’s share of any equity therein an provide documentary evidence of each to the Supervisor. The debtor must accept the offer which provides the greatest return to creditors and 100% of the debtor’s share of such proceeds must immediately be paid into the Arrangement. Monthly contributions may then cease in order to accommodate an increase in mortgage payments and the Supervisor may take steps to conclude the Arrangement having first written to creditors to ensure there are no objections to the IVA being completed early. Should the debtor be unable to realise his equity in the above manner, the Supervisor must convene a general meeting of creditors to consider the debtor’s options.

It is unlikely that you will be able to remortgage, I've not known of anyone who has been able to.

It may be that contributions continue for a further twelve months if the creditors state this.

Best speak to your IP about this.