4th year capital release

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lulu27

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Post by lulu27 » Sun Aug 22, 2010 1:43 pm
Hi

I am looking for some advice I am a bit stressed as our IP has messed up and left us with little time to find a remortgage.
But the question I want to ask is can I be forced to take on a mortgage that will make me much worse off for the foreseeable future?
Looking around it seems that in my circumstances (IVA husband self employed for less than 1 year) I will have to take a mortgage from a non high street lender and I will have to pay 7% interest and a large fee upfront for arranging it.
I went into an IVA to save my home and I am now worried that I am going to struggle to pay my mortgage in future and that the end of my IVA will not mean the end of my finanical hardship.

I would be very grateful for any advice.

Thank you
 
 

IRHR

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Post by IRHR » Sun Aug 22, 2010 3:28 pm
I doubt very much that you will get a remortgage whilst you are in an IVA, I think there was a post some time ago that suggested the possibility if you had about 50% equity. We couldnt get one anywhere even in the sub prime market and were prepared to pay the IVA for an additional 12 months but in the event the creditors agreed to finish the IVA early due to other circumstances. It seems fairly common at the moment for IVA's to be extended for a year to cover equity relaeses.
I would ask your IP's advice first and foremost.
 
 

kallis3

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Post by kallis3 » Sun Aug 22, 2010 5:53 pm
It is highly unlikely that you will be able to remortgage.

You may find that your creditors ask you to continue for a further twelve months.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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plasticdaft

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Post by plasticdaft » Sun Aug 22, 2010 7:09 pm
A 12 month extension is beneficial for all as it returns more to creditors but doesnt tie you into something that will cost you much more longer term(sub prime mortgages tend to be costly to get out of and costly to stay in!!!).

I cant see anyone in a IVA getting a remortgage anytime soon,but given that the sub prime market existed in the 1st place means a market does still exists for those of use with a colourful credit history.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

lulu27

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Post by lulu27 » Mon Aug 23, 2010 9:30 am
Thanks for all your advice I am off to see the financial adviser today. I know you are right about only another 12 months payments but when you thought you were nearly finished another 12 months with the stress of living like this does not appeal.
 
 

lulu27

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Post by lulu27 » Tue Aug 24, 2010 9:59 pm
An update we have applied for a mortgage and been turned down due to credit score. We have enough equity and earnings but bad credit.
I now am awaiting the 2 letters of rejection that I have to send to my IP. Then I have to wait for the variation meeting.
I have a question my IVA originaly was due to end in June 2011 but we took a 4 month payment break so it is now due to end in October 2011.
If I have to make another years payments due to my lack of equity release will I now finish my IVA in June 2012 or October 2012?
Thank you
 
 

kallis3

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Post by kallis3 » Tue Aug 24, 2010 10:05 pm
I imagine it will be October 2012 as you're already playing a bit of catch up.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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