Hi , we are just entering are 5th year. And i know we will soon be asked to try to remortgage. We know its really hard to do this but we want to try and get out of the iva. What interest rates would we be likely to be charged?
We owe 110,000 on the mortgage and have a 25,000 secured loan. The house is worth 200,000. We pay 850 a month for the iva so including year 6 would need to borrow around 20,000 to pay off the iva. We have 12 years left on the mortgage.
Interest rates vary according to lender, but it will not be a good one! The amount to be released has no relationship to payments due in the IVA. It is dependant on the equity available up to the full original debt, plus fees and possible statutory interest, but capped by the requirement to not extend the mortgage term or have repayments more than half the IVA payment. Some firms will also look at secured lending, which sometimes works out better. But ... the secured lending does not have to be taken if a remortgage is not available ( which it hardly ever is) and the 12 month extension will kick in.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I doubt you will be able to remortgage and (personally speaking) an extra 12 months is better than another secured loan is not good - plus, you may find your other secured loan company will not agree to it.
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
Getting out the iva a year early will not remove it from file ... personally I would be wary over taking on another longer term loan to complete an iva .... I may be old school here as my IVA concluded 9 years ago but is that not just taking on new debt, and for longer at that too !
I would demonstrate the equity and submit it but I would personally prefer a 12 month extension ... it will be done and behind you alot quicker than a new loan.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
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
