www.iva.co.uk

Hello All

I've read through this (and other) forums quite a bit but cannot seem to find the answer to this one!

I'm approaching the equity release stage in the next couple of months and am wondering if the IVA company can force/insist on you extending the remaining term of any current mortgage to increase the chances of being successful? I understand the Protocol jargon but just wondered if it was insisted upon that I try to remortgage for a 20/25 year term when submitting applications?

I have 9 years left on my current mortgage so can I just apply for mortgages for, say, 10 years and send these in a rejections?

Any advice would be useful as this is really rattling my skull!! Thanks

The IVA remortgage term will not extend beyond the latter of the debtor’s state retirement age or the existing mortgage term. So they will expect you to apply on those terms -- you will still get rejected in all probability anyway. Also the repayment should be no more than 50% of the IVA payment.

The first way to get out of this is check whether you have standard £5k minimum equitable interest in your IVA terms. Then if you can show you have less than this the clause will not kick in.

If you have more than this highly likely the year extension will end up kicking in.