applying for a mortgage

[mayi]

If one is on IVA can he or she apply for a mortgage

[Welsh Boy]

mayi

In answer to your question you would need to discuss this with your IP. If on the other hand you are asking will mortgage lenders lend to you whilst you are in an IVA the answer would be yes they would consider your application on its individual merits. Hope this helps-Tony

[ordinary_world]

Hi Tony,
I'm new to these forums and have been considering going forward with an IVA. Melanie has advised I contact yourself regarding a remortgage, please see the following thread for details:
http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=2094

Basically, we are in year two of a five year fixed repayment mortgage deal with Nationwide. The link above outlines our circumstances relating to insolvency and considering an IVA. Our main concern related to increased repayments in the fourth year of an IVA due to remortgaging for equity release and thus collapse of an IVA. Melanie mentioned the option of remortgaging before the IVA and using the equity to pay creditors and have the IVA take into account the increased mortgage repayment from the outset.

I have defaulted on all payments this month for the first time, making a token payment of £5 to each creditor to pay back arrears on priority debts and arrange an IVA or DM solution. Given this situation, how difficult would it be to obtain a remortgage that will release equity for the creditors and also keep our outgoings to a minimum (little increase on £866).

Any advice and support appreciated.

Best,
OW
ps really sorry if I've hijacked this thread!

Income and Expenditure

Total Monthly Income £ 4,408.30

Total Monthly Expenditure (Priority Debt) £ 3,259.86
(Mortgage repayments: £866)

Total Surplus Income: £ 1,148.44
(Unsecured debt costs are £2.2k hence considering IVA)

House details:
Estimated current value 180,000.00
Mortgages outstanding 141,924.00
Equity 38,076.00

[Welsh Boy]

Hello -ordinary world

I have just read through the notes posted and in answer to your point how difficult would it be to obtain a remortage to capital raise considering your recent token payments, it would not be difficult at all. You could certainly re mortgage to 90% of the value of your property so based on a projected value of £180k you could easily go to £162k with numerous lenders. There are possibilities to go for 95% loan to value i.e.£171k with a couple of lenders. The actual monthly repayments I can only give you if a search is done on yourselves so if you wish to contact me at: antony.parsons@btopenworld.com you are most welcome and I can advise you from there. Picking up on a point raised in earlier postings concerning the difficulty in re-mortgaging whilst in an IVA. If you discuss the option with your IP and it is acceptable then obtaining a re-mortgage is not difficult, the key here being your IVA being "conducted satisfactorily". This basically means you have adhered to the terms and conditions of the IVA and you can get confirmation of this from your IP. This is the criteria the new lender would be looking for and if you have indeed adhered to the terms of the IVA then numerous lenders would be looking to do business with you, some better than others but you would have scope to choose. Also the rates are not that penalising, yes they will reflect the fact you have an IVA but you may pleasantly suprised what is available. Hope this helps-Tony

[ordinary_world]

Superb Tony - really appreciate the advice.
I will email you privately with further details.

Best
OW