www.iva.co.uk

How hard is it to release equity in your property to pay off your IVA. ?
Will your existing mortgage company eg Halifax give you more money on your property even if you have an IVA as they have to do a credit check on you.

Hi
It is more likely that you will have to remortgage with a sub prime lender,However I have no direct experience of this so other members will,hopefully, be able to give a reply based on own experience.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Unlikely that Haliax will offer you a further advance to conclude your IVA, but worth a try. There are many other lenders who would be prepared to consider re-mortgaging you - one of my own clients just got a 95% loan to value deal fairly easily.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks,
The thing is i have a lot of equity in my property as i bought my house when prices were very low. The price increase would be in the region of 100k. Would the creditors want all of their money back or just what is in the paperwork ie 30p in the £.

Hi Brian
Creditors may want as much as 85% of your equity,with over a 100k equity are your unsecured debts higher than this ? If not then you are not insolvent and an IVA will not be an option.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Creditors will want as much as they can get so you will need to compare any offer to them with what they are likely to get if your IVA was to run its full course (less a deduction for fee reduction).

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

I will be starting my 4th year of an IVA and there is the equity clause in it to remortgage to pay off my debts. My IVA was for approx £28000 so where does that leave me, surely they cannot want more than that, Saying that they want 85% of my equity is sayin g they will want £85k. Cant be right

Confused ?
Your IVA was for 28k and you have over 100k equity in your property ... how did you get an IVA ?
Or more like why ?

Told ya - Im confuddled
MIsh

Hi

You mention £28k. Was this the total amount of your debt upon entering the IVA or is this the reduced amount giving only 30p/£?

If it is the latter and you have as much equity in your property as you say you do, your creditors are going to want all of their money. For example, if your total debt is £100k and your IVA offer was 30p/£, you will in effect be paying £30k plus IP fees. Depending on what you have paid into the IVA to date, for arguments sake, lets say have been paying £300 per month which equates to £10,800 over the last 3 years. Your equity release clause will in effect be 85% of the equity you raise(assuming you have £100k equity in the property at present), you will have to pay £85k, less the £10,800 plus reduced IP fees.

Perhaps if you upped your pence in the £ a tad, it might be tempting for your creditors so that you could end your IVA earlier. The IP experts on this site are correct, you would have to approach a sub-prime lender and not the high street banks. You will pay a bit more in interest but the figures quoted by various lenders are not as outrageously high as one would think.

Good luck

Sue

May I suggest that you discuss this with your IP

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

My Full Iva amopunt was 28k, I did not have that equity in my property 3 years ago.

House prices have rocketed in the last 3 years in my area.

please excuse the spelling on my last message.

I too am confused as to how you entered into an IVA with that amount of equity. You say your full IVA amount was £28K - what was your total debt amount?

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Brian
You may have to release equity upto the value of your ORIGINAL debt,plus IP fees and possibly statutory interest less the amount that you have paid in over the five years or 85% of your equity,whichever is greater.
Regards
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Surely they cannot expect 85k for a 28k or so debt, or am i being a bit thick here. I dont mind paying the full amount if it finishes the Iva and gets me back on an even keel again

Again, when i say i dont mind paying the full amount i mean the original debt amount , if that amounts to the total of 28k plus IP fees then minus what I have paid in then that is fair enough.