I have no idea how much I need to be asking to remortgage for

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katherine682
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by katherine682 » Wed Apr 18, 2018 5:45 pm
I’m in the 5th year of my IVA - Yey! Have just received a letter from my IP asking for two mortgage offers/illustrations however I have no idea how much I need to be asking to remortgage for (I don’t know what’s left on my IVA - yes I know I probably should know but I trust my IVA McCambridge Duffy) are they wanting actual offers (which I assume I won’t get) and am I supposed to just go to two high street banks (assuming I’ll be rejected) or go to one that specialises - tbh I’m really worried that my IP can make me remortgage with a specialist broker and then I’ll be tied in to a mortgage at a horrific interest rate for years! Just got the letter today and I will speak to them tomorrow but advice before would be appreciated. Thank you!
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Foggy
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by Foggy » Wed Apr 18, 2018 5:49 pm
You are very unlikely to get a remortgage for any amount with an IVA on your files, but you have to jump through the hoops. As for the amount, ask McCD what they have calculated.
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katherine682
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by katherine682 » Wed Apr 18, 2018 6:03 pm
Foggy wrote:
You are very unlikely to get a remortgage for any amount with an IVA on your files, but you have to jump through the hoops. As for the amount, ask McCD what they have calculated.


I will speak to them tomorrow to find out what they need me to do - it will no doubt say on my agreement what I need to release :lol:
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Foggy
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by Foggy » Wed Apr 18, 2018 6:27 pm
katherine682 wrote:
Foggy wrote:
You are very unlikely to get a remortgage for any amount with an IVA on your files, but you have to jump through the hoops. As for the amount, ask McCD what they have calculated.


I will speak to them tomorrow to find out what they need me to do - it will no doubt say on my agreement what I need to release :lol:


Unfortunately it is not an exact science. The agreement will say that you need to release 85% of your share of the equity -- but this amount could be limited by the amount required to repay the full original debt, plus fees and possible statutory interest. It will also be further limited by the fact that the repayment on the new mortgage can only increase your current mortgage payment by 50% of the IVA payment as well as what you would be able to borrow being limited by the available term and your income / credit rating.
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kallis3
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by kallis3 » Wed Apr 18, 2018 8:11 pm
Have you had a valuation done?
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Lisa Thomas
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by Lisa Thomas » Thu Apr 19, 2018 8:22 am
Are you sure the extension clause will kick in? I presume you have 'standard' terms, if so do you have more than £5k of equitable interest?
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katherine682
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by katherine682 » Thu Apr 19, 2018 9:53 am
Lisa Thomas wrote:
Are you sure the extension clause will kick in? I presume you have 'standard' terms, if so do you have more than £5k of equitable interest?


To be honest I just always assumed it would as I guessed I wouldn’t be able to remortgage so I’ve just prepared myself for it being six years.

I guess there may be £5k equity but I’d be surprised if still owed that much. My original debt was around £15k and as at October last year I’d paid in about £14.5k - I am also due a bonus of £5000 in May (I’m lucky enough that I’ve had one of these annually but not for as much) so that’s made more available for my Iva - (of course I know there’s fees etc on top of that) and there’s currently £850 in their bank account (I presume waiting for the next distribution to creditors) - and paying in £289 a month - i have emailed my supervisor anyway and Michael Peoples who is lovely - I have no quibbles with McCambridge Duffy - they’ve been brilliant - I guess I’m just trying to understand it all! :shock:
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katherine682
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by katherine682 » Thu Apr 19, 2018 10:47 am
Happy to say that McCambridge Duffy have responded already - that’s how efficient they are - and I do not have enough equity to remortgage - so payments will continue for another eighteen months - which I’m more than happy with as this is something that I’d thought would happen and had prepared for. :D
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kallis3
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by kallis3 » Thu Apr 19, 2018 11:32 am
Good news!
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katherine682
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by katherine682 » Thu Apr 19, 2018 1:43 pm
kallis3 wrote:
Good news!


Yes it is - at least I don’t have to worry about it now and just crack on with paying the final eighteen months :D
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Foggy
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by Foggy » Thu Apr 19, 2018 2:47 pm
Out of curiosity -- does your equity release clause have a £5k de minimis ?
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katherine682
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by katherine682 » Thu Apr 19, 2018 3:42 pm
Foggy wrote:
Out of curiosity -- does your equity release clause have a £5k de minimis ?


Yep it does.
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by Foggy » Thu Apr 19, 2018 3:44 pm
katherine682 wrote:
Foggy wrote:
Out of curiosity -- does your equity release clause have a £5k de minimis ?


Yep it does.


Are you happy that there is more than £5k equity ? If there is less then the extra 12 months wouldn't apply (assuming you have the standard clauses).
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Lisa Thomas
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by Lisa Thomas » Fri Apr 20, 2018 8:53 am
I think you have misunderstood what I have said about equity.

How much equity is there in your property?

You may not have to extend your IVA if you have standard terms and have less than £5k.

A valuaiton is probably in order - if you can show you have less than £5k (assuming you have the standard clause - check your proposals) then the extension WILL NOT apply so your IVA can be closed now!
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katherine682
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by katherine682 » Fri Apr 20, 2018 9:51 am
Lisa Thomas wrote:
I think you have misunderstood what I have said about equity.

How much equity is there in your property?

You may not have to extend your IVA if you have standard terms and have less than £5k.

A valuaiton is probably in order - if you can show you have less than £5k (assuming you have the standard clause - check your proposals) then the extension WILL NOT apply so your IVA can be closed now!


As far as I’m aware, my iva agreement is that if I have less than £5k equity in my property (which I do have) then I do not have to remortgage (and my house is removed from my IVA which has been done) and as I can’t release any equity my Iva is extended another twelve months to six years not five - which as far as I was aware was standard procedure for an IVA. :?
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