will i be able to get a remortgage

[molly16]

Hi i have been in an iva now for just over 3 years and fingers crossed everything seems to be going well.My main concern is that in little under 12 months i have to release no less than 85% of the equity in my property as we are in uncertain times my concern is that as banks are reluctant to lend will i be able to get a remortgage i have around 30k equity in my propety and if i can not remortgage where do stand with creditors who want the equity from my property is anybody in a similar situation or has anyone managed to remortgage at present while in an iva..
thanks for the info...

[Adam Davies]

Hi
I would think that you will only be able to remortgage upto 80% loan to house value,in todays market,infact I would bet money that you will not be able to remortgage at all.
As long as you have attempted to remortgage you have complied with your IVA and it should conclude at the end of the five years unless you have a clause to extend it for a year if you are unable to remortgage.
Regards

[Andrew Graveson]

Andy is spot-on. Mortgage availability for those in IVA's is incredibly tight and I am unaware of any product offered above a loan-to-value of 80%.

[Viki.W]

So does that mean that the IVA equity clause in general may change to 80%?

[Andrew Graveson]

Hi Viki,

Who knows but it's unrealistic to have a clause that cannot be satisfied.

The irony of course is that many of the financial institutions requiring the inclusion of this clause are the same institutions who have ceased to offer mortgage products to those in IVAs.

[Viki.W]

Crazy!