Hi, my partner has an iva for 5 years and is only in his 1st year. His debt was around £18,000. He pays around £175 a month. The rest will come out in equity from our house. What I want to know is how much will come out of our house, will it be the set percentage or only the amount he owes? Trying to work out if it's worth paying more off our mortgage when we remortgage next year to get the cost and years down to prepare for the equity to come out? Just want mortgage to go quicker, but if it's purely done on percentage and not what he owes then it's not worth getting the years down.
He is unlikely to be able to remortgage, especially not now. I doubt you would be able to remortgage any time soon.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The amount he will be required to remortgage will be up to 85% of his share of the equity. There will be several ceilings:
The payment for the new lending cannot exceed 50% of his IVA payment at the time of equity release.
The term cannot extend beyond retirement age or the end of the current mortgage term, whichever is later.
The amount will not exceed the balance of the remaining original debt, plus fees.
I assume what you are referring to as remortgaging next year is that your current 'deal' will expire --- usually in these instances you simply revert to the lenders variable rate, though some lenders do still offer deals to customers in an IVA. I doubt that the IP will agree to increasing the mortgage repayments to shorten the term.
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