Almost paid all the debt, do I still need to remortgage?

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Colin D
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by Colin D » Sat Aug 12, 2017 9:37 am
Hi, I'm currently coming to the end of an IVA with 6 monthly payment left. I entered the iva with £32k debt. Due to promotion at work and yearly bonuses I have currently paid £37k into my IVA and calculate £40k by the finish. I understand I pay money for administrative fees and so on but I'm pretty sure I should be close to paying all my creditors now. If this is the case do I still need to remortgage my house to release equity or enter a 6th year like I'm being told?
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Forum Expert
Posts: 27300
by Foggy » Sat Aug 12, 2017 10:55 am
The figure for full repayment will depend upon wheter you need to add in statutory interest or not ( it might have been excluded, if not, the creditors might agree to remove this obligation ). FULL repayment of debt, fees and stat, interest would need roughly £51,500 (at the end of the 5th year point)... losing the S.I would knock that back to about £39,000.

Certainly worth discussing with your IP, as you have been paying over and above, they could give you a break !
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Lisa Thomas
Industry Expert
Posts: 7046
by Lisa Thomas » Mon Aug 14, 2017 8:12 am
Based on the figures I expect the 1 year extension will still apply, if you have standard protocol terms.

Have you established the level of equity? If you can show you have less than £5k interest then the extension won't apply...
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Michael Peoples
Industry Expert
Posts: 15189
by Michael Peoples » Mon Aug 14, 2017 9:08 am
I agree that you should be close to repaying in full but statutory interest could be the fly in the ointment. Check your paperwork and have a word with your IP who should be able to advise when the IVA will cease.
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