Is remortgaging wise?

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petros

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Post by petros » Mon Aug 26, 2019 4:03 pm
Hi , I have been in an IVA form 14 months now.
My lease on my car finishes in 10 months and have a balloon payment. Is it wise remortgaging paying IVA and car off?

kallis3

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Post by kallis3 » Mon Aug 26, 2019 4:08 pm
If you're in an IVA you are very unlikely to be able to remortgage. Bear in mind you always owe the full amount to your creditors, not just your IVA figure.
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.
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Foggy

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Post by Foggy » Mon Aug 26, 2019 4:15 pm
It is a possibility, depending on all the figures, to remortgage and pay off the IVA. Whether you would finance a balloon payment is, again, dependant of the figures.

Have a word with Ryan and / or Shaun, who, I believe have done similar in the past. Their contact details can be found on their profile pages here:

Ryan: memberlist.php?mode=viewprofile&u=18488
Shaun: memberlist.php?mode=viewprofile&u=22837
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

Shaun Vickery

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Post by Shaun Vickery » Thu Aug 29, 2019 1:55 pm
Hi Petros. It may be possible to remortgage (or raise a second charge mortgage) to make an offer of Full and Final settlement to your creditors but this would depend on you having enough equity in your property (amongst other things). It really depends on the numbers involved but you will certainly be in a very narrow space in terms of the lenders available to you.

It's never ideal adding a car to your mortgage in many ways, purely because this means paying interest on it for the duration of the mortgage but of course this is just something to consider.
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TheTruth

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Post by TheTruth » Fri Aug 30, 2019 8:15 am
in my view and from experience they will towards the end of your iva ask you to possibly remortgage to release equity this is an od request as your credit file is shot to bits and no lender will do it and if they did you would use a sub prime lender and the rates would be horrendous
hopefully they will ask you for a for a valuation which you can get from a local friendly estate agent and i think anything less than 10% equity my mind cant remember they wont look at it

kallis3

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Post by kallis3 » Fri Aug 30, 2019 8:21 am
Remortgages are rare - depends on your paperwork as to whether you need to get a secured loan. Shaun and Ryan do these and they are very good.
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

Foggy

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Post by Foggy » Fri Aug 30, 2019 8:36 am
Fri Aug 30, 2019 8:15 amTheTruth wrote:
in my view and from experience they will towards the end of your iva ask you to possibly remortgage to release equity this is an od request as your credit file is shot to bits and no lender will do it and if they did you would use a sub prime lender and the rates would be horrendous
hopefully they will ask you for a for a valuation which you can get from a local friendly estate agent and i think anything less than 10% equity my mind cant remember they wont look at it
Oh ... they can and do get remortgage offers, or with the new terms, secured loans.
The trigger is £5,000 equity and some firms have re-jigged the calculation method to 'catch' more people in the clause (The wording is vague enough to allow it in some cases, but the actions taken by these firms are questionable on grounds of legality and definitely questionable on morality grounds).
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
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