Provided the rent covers the mortgage and the equity is released in year 5 as normal there should be no real issue. Are you in an IVA or considering one?
I am currently coming to the end of my first year of my IVA. I work a distance from home and with the rising cost of petrol I tend to stay in the city I'm working in more and more. I want to make this a more permanent arrangement but was unsure whether I was allowed to do so.
Alternatively, can I end my IVA early? I haven't had a windfall or anything but if I rent my house out and don't have the fuel costs I could afford my previous loan/card repayments?
If you failed the IVA any payments made to date would be lost. It may be better to rent the property out and increase your contributions to the IVA. This would still give you full protection while increasing the dividend to creditors. You may even find yourself a bit better off as your IP may be able to give you some additional allowances and all the petrol savings may not need to be handed over. Speak to your case manager and discuss the options but I do not think that failing the IVA would be your best option.
