We’re finally getting to a stage where it’s nearly time to try and release equity to pay off the rest of our IVA. For the past four years, I believe we’ve been paying too much and it’s absolutely crippled up (£600 a month earning jointly £37k a year) - original debt was £42k and we’ve paid back £28k - our house is worth £120k and we have about £50k equity so the release clause will be triggered. The company that manages our IVA has recently changed hands and our new supervisor put in our annual report that the old supervisor “wholly overestimated the amount of equity we should pay in based on affordability” - we are being asked to remortgage £10k.
My question is, do we attempt to get a remortgage for the full £10k even though they have said the old supervisor wholly over estimated the figure?
Second question is, does anyone know of any banks that will accept IVA customers - we just want our lives back after being completely skint these past four years and would rather just pay it off if we can rather than extend for 12 months.
In the current climate remortgaging is becoming difficult and IPs have been advised to go straight to the extension due to the current pandemic and associated problems. Have a look here (note: this only applies to Protocol terms) https://debtcamel.co.uk/coronavirus-new-rules-ivas/
You could them move to pay the 12 months as a lump sum with a full and final offer ---- finding 12 x 600 (7200) is a little easier than the £10k. BUT ... even £10k might not be the equity sum released as there are limits to re-financing regarding term and repayment amount (cannot be more than £300 per month, in your case).
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