I'm considering going down the route of an IVA as I can't get control of my debt. Ive spoken with debt advisors and they have suggested this is the best way. Now in my eyes it seems like a no brainer but my partner is quite against it in the fact that there is a 5/6 year restriction on moving house along with the fact that the IP might ask us to release equity. I know a lot of homeowners use the equity in a property to buy somewhere else down the line and I dont want to stuck here even though the black cloud might have been lifted. My question is, if I transfer the mortgage into her name solely and just allow to pay for it in my budget will that help the situation at all when it comes to remortgage or sell? As then I would have no ties to it at all? Long winded I know just need to know the facts.
First -- your mortgage lender would have to agree to the mortgage going into her name alone, which is unlikely as they would effectively be throwing away security. And she would have to have the income to support the mortgage alone. If you managed that, you would not be allowed the expense to pay what is, at that point, someone elses mortgage.
There is also the danger, albeit small, that, if your creditors got wind of this they could force bankruptcy, rather than agreeing to the IVA in which the transfer of the property could be set aside.
On the other hand, it isn't often that all the equity is lost into the IVA ---- they can only take up to 85% of your share. There are also other limits regarding the repayment amount for the equity released. Currently most equity release exercises result in a 12 month extension to the IVA, rather than actual release.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk