Wondering what realistically my payment will be for extra year in lieu of remortgage ?

[murph]

I am currently 4 years and 4 months through my IVA. It is a 5 year with option to re-mortgage at end or an extra 1 years payments. I am advised that I will not obtain a mortgage ( £53000 owed on a £82000 house). I expect to pay the extra year, I have had no issues with payments so far and have contributed over £7000 in overtime payments also. My current monthly payment to my IVA is £495.00. My question is: What will be realistically my final year monthly payment

[Foggy]

Hi, it will be assessed in relation to your disposable income, as in previous years, so, unless you have had an enormous change in income or expenditure, should be around the £495 mark again.

[Niobe]

Agree with Foggy - it should be the same as you are paying at the moment.

[Broke of London]

Hi! Congrats on getting so far! The 12 additional payments would continue at an affordable level...it isn't about squeezing the full value of the equity into the extension. x

[Sensible77]

My additional 12 months payments are the same as my payment at the end of 5 years. If you’re thinking that 12 payments of £495 is much less than the potential equity release, I don’t think you need to worry. I pay £620 per month so will pay £7,440 over 12 months but my equity was £18,000.

[Niobe]

We have to raise £28k between us so 12 months at £600 a month is a hell of a lot less!!

[Sensible77]

Niobe - you've hit the nail on the head. An extra year's payments is a drag but it is by far the better result financially.

[Niobe]

Too right!! It will be a drag but I can see the light at the end of the tunnel now so I can put up with it.

[MelanieGiles]

Far better than having to take out a higher mortgage, and thus indirectly extend your debt repayments further into the future.