How likely will it be in the 4th or 5th year for us to re-mortgage?

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susan105
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by susan105 » Thu Feb 01, 2018 8:23 am
Hi, how likely will it be in the 4th or 5th year for us to re-mortage. We both in our 50's I be 58 and my husband 56 and will have approximately 50,000 equity and in 5 years our debts should have come down to 30,000 approximately. I understand that we may have to repay 85 per cent of the equity or pay another year and show evidence that the remortage has been declined
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kallis3
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by kallis3 » Thu Feb 01, 2018 8:55 am
Hi,

Chances of you being able to remortgage are slim to none. Some firms try and get you to take out a secured loan but's better to do the extra 12 months.
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Ryan
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by Ryan » Thu Feb 01, 2018 9:09 am
Agree with Kallis
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Foggy
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by Foggy » Thu Feb 01, 2018 9:12 am
An IVA after 2014 (using the 2014 and subsequent Protocols) will have the ability to have you take out a secured loan, rather than remortgage, if a remortgage is impossible. So check that.

At the moment a remortgage is nigh on impossible withing the other limits set by the agreement --- the situation might change drastically over the next 5 years.
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Shaun Vickery
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by Shaun Vickery » Thu Feb 01, 2018 10:27 am
You are right that it normally requires you to try to re-mortgage up to 85% of the value of the property and, as Foggy says, it also depends on the protocol version your IVA complied with (if at all). There are various other rules within the protocol which regulate the amount of equity which may need to be released and of course anyone advising you would need to make sure it was affordable (they will be regulated by the Financial Conduct Authority (FCA). Speak to your IP firm and ask them what they require of you.
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