6th year rule in my IVA

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wakeywakey
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by wakeywakey » Mon Mar 26, 2018 7:38 pm
Hi Guys,

Still a bit confused over things even months after starting the IVA

Year 6 is confusing me. My IP said in year 6 we wouldn't be able to remortgage due to age & equity so he added an extra year at the same rate of monthly payments.
Could i ask the following about this.

1. Is this set in stone or can it be changed if house doubled in price let's say
2. Would a remortgage be for the whole amount left or just the final 12 months in one go (£50k or £3k for example)
3. Can you buy your way out of it, like borrow from relative to end IVA end year 5
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Foggy
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by Foggy » Mon Mar 26, 2018 8:06 pm
wakeywakey wrote:
Hi Guys,

Still a bit confused over things even months after starting the IVA

Year 6 is confusing me. My IP said in year 6 we wouldn't be able to remortgage due to age & equity so he added an extra year at the same rate of monthly payments.
Could i ask the following about this.

1. Is this set in stone or can it be changed if house doubled in price let's say
2. Would a remortgage be for the whole amount left or just the final 12 months in one go (£50k or £3k for example)
3. Can you buy your way out of it, like borrow from relative to end IVA end year 5



1) If the 12 months was added in lieu of the equity release that could not happen then the property will not be part of the IVA ( it should be listed as an exclude asset) in which case changes in it's value are of no concern as it is not part of the arrangement.
2) If you could have remortgaged it is usually for 85% of the equity, up to the valure of the total original debt, feesd and possible statutory interest .... NOT just for the final 12 months payments.
3) Yes, you can make a full and final offer which, when made, is based upon the number of repayments left multiplied by the monthly amount.
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Lisa Thomas
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by Lisa Thomas » Tue Mar 27, 2018 8:14 am
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