Can person in joint mortgage refuse to remortgage ?

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natalie343
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by natalie343 » Mon Jul 31, 2017 9:16 pm
In the 4th year...if you have a joint mortgage...can the other person refuse to remortgage?
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kallis3
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by kallis3 » Tue Aug 01, 2017 6:50 am
Hi,

Not sure but the chances are you won't be able to remortgage anyway.
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Michael Peoples
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by Michael Peoples » Tue Aug 01, 2017 7:56 am
When the IVA was set up the joint owner should have been advised and signed whatever paperwork was required. If they refuse to remortgage now the IP could fail the IVA, petition for the debtor's bankruptcy and the house could be at risk. This is why the spouse or joint owner should always be aware so they can take their own legal advice.
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Foggy
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by Foggy » Tue Aug 01, 2017 8:23 am
I completely echo Michaels thoughts : The joint tenant should have / would have signed the paperwork at the outset and would / should be aware. To refuse come the end would completely defeat one of the prime objectives (to protect the house) and they would be more at risk than ever of losing the property completely.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 01, 2017 9:23 am
No - I can't see how you can force someone to remortgage, unless you had a Court Order, which would be highly unusual.
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Ryan
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by Ryan » Tue Aug 01, 2017 2:17 pm
Hi Natalie,

As Kallis said it's also if you are able to find a Lender willing to lend whilst in an IVA and if you did so you would be looking at High interest rates which you may feel makes re-mortgaging an expensive option.

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natalie343
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by natalie343 » Tue Aug 01, 2017 4:41 pm
I am waiting for my Iva to be approved meeting on the 11th Aug....as of yet my husband hasn't signed anything will they ask later? He doesn't want to as our mortgage is a brilliant rate...just don't know if I've done the right thing now. When I asked the company dealing with my iva they said I wouldn't be able to remortgage so would just pay another year, but now I've seen there are company's willing to except you at silly interests rates!!
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kallis3
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by kallis3 » Tue Aug 01, 2017 5:13 pm
Your husband will probably have to sign an RX1 form which just means your house cannot be sold during the IVA without your IP's permission. Once completed, that restriction will be lifted.
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Foggy
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by Foggy » Tue Aug 01, 2017 5:42 pm
Anything could happen in the mortgage market over the next 4 / 5 years -- it may be easier to remortgage, it may be impossible. If you have less than £5k of equity (your share) the clause might not even be triggered.

I feel your potential provider is being a bit glib just saying you will probably have to extend -- this may be the case, but they should give you a full explanation. Also make sure you get a writen example of how they will calculate equity --- there is more than one way; one to your advantage ( the usual way) and another more towards the creditors advantage !
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luluj
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by luluj » Wed Aug 02, 2017 1:20 am
Agree with foggy you need to fully understand the equity release clause before accepting it.
As others say a RX1 restriction on the sale of the property will be put in place and your partner will be asked to sign it. The current mortgage rate will not be affected at this moment in time.
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