Help With Early Settlement Questions

[litmarvic]

Hi First Time Post,

we've just found the forum, we didn't know there was any such forum on the net and we've previously felt really alone and niave about our IVA

We're just 15 months into an IVA with our house as an excluded asset, there isn't a lot of equity in it anyway from previous consolidation loans.

our first anual review ended up with us paying out another £100 (New monthly payment £600) on £88k This was due to my payrise and me cancelling my pension contributions to free up some money to live. I was shocked when this went up as our IVA proposal detailed each of the 5 years @ £500 there was a mention of an anual review but that was explained to us as a review to make sure we can still afford the £500 not as any reason to extract more money we can't afford

I've read some threads about settling early...... We have some questions which we'd really like some help with please. We've really lost faith in our IP as far as taking any advice from them goes.

1. Is it likely that we're not far enough into our IVA to propose early settlement ?

2. Are We allowed to re-mortgage to help early settlement, it's possible that we may be able to borrow some money from a relative and combine the last drops of equity with this to propose early settlement.

3. For those people who do have re-mortgage clauses in their IVA's are there specialist lenders for people with IVA's or do "normal" lenders provide loaded rates for people like us

I'd just like to add that finding this forum has really helped us feel that we're not alone in our unfortunate circumstances. We've felt like Lepers for the last couple of years.....

Any help or advice on the above questions would be great

Thankyou

Mac & Tori

[MelanieGiles]

Hi there and a warm welcome to the forum

Taking your questions in the same order

1 There is no time limit on putting forward a variation to the terms of your IVA.

2 If your property is really excluded - please make sure that it is - then you will need the Supervisor's permission to remortgage.

3 There are plenty of lenders who will lend to people in IVAs, but you will be penalised for this in terms of interest rate and loan to value.

Glad you are finding the forum useful. We all do!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mikebdomain]

Hi litmarvic and welcome to the forum

1. You can propose and early full and final settlement anytime during an IVA.
2. You are allowed to remortgage with the permission of your IP/Creditors.
3. Specialist mortgage brokers are your best point of contact to find the best mortgage product available.

Obviously what product will be available will depend on your personal circumstances.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[mikebdomain]

LOL just beat me to it Melenie


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[MelanieGiles]

Great minds think alike, Mike!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[litmarvic]

Thanks guys for the quick replies and advice...

I'm not sure how much (if any) equity we have in our home, but i've just read through our IVA agreement and it's definately not part of our IVA.

I take it then that it's going to be hard to get anything like a 100% mortgage while in an IVA ?

[mikebdomain]

It will be fairly impossible to obtain a 100% mortgage whilst in an IVA, the best you can hope for in the current market is 90% IF you are going to clear your IVA.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi and welcome
You are amongst friends on this forum who will not judge you but help you.
To give you some idea you will need approx 21k to return the proposed dividend for an early settlement.
Do you think that this is possible from an equity release and/or help from relatives ?
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

[litmarvic]

Hi on the basis of only getting a 90% mortgage i'd really struggle to get anywhere close to £21k added onto my mortgage.... as far as relatives go i'm not sure just now how that's going to pan out

I take it unsecured loans are both virtually impossible to obtain and outside of the terms of an IVA (even if it's to settle an IVA?)

I guess the ironic thing is that £21k borrowed at a sensible rate over 4 years would be much less than £600 per month..... If only... we could start living our lives again

[Adam Davies]

Hi
Just another point,each year at yout annual review you should be filling in a fresh income and expenditure form.Make sure that his is accurate and that you are claiming for all increases in costs,this could offset some of the payrise that you got and would mean less of an increase to your IVA payments.
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