IVA with Mortgage

[Foggy]

Very unlikely you will be able to secure a remortgage during the IVA. New IVA protocols have a 12 month extension or a secured loan from a 3rd party of your IVA company to cover this shortfall in equity.

To be honest it's poor advice advising it's 'very unlikely' to secure a mortgage whilst in an IVA. It seems a lot of people who have entered an IVA on the back of advice like this have a shock when it comes to the time to release equity, as they find out it may be possible.

Lenders attitudes towards lending to people within an IVA has changed a lot over the last few years, whilst it may of previously seemed impossible; it's now very much an option for people in an IVA (provided they have the equity and it's affordable, but IVA rules follow this also) and there are lenders who will accommodate this.

The secured loan/second charge mortgage option is also available which increases the chances of being able to successfully release equity. Remember, a 12 month extension is normally only agreed on the basis that the debtor is not able to release any equity.

"Very unlikely" seems a suitable description of the market as it is and, indeed, from posts on here it seems that an extension is still the most common outcome. "Very unlikely" has similar connotations to the phrase you have used ..."may be possible".

The secured loan / second charge option is only enforceable in arrangements using post 2014 Protocol terms.

As mentioned, we are not giving advice, but expressing opinions based on personal experience and always advocate seeking professional, qualified, advice before taking action.

[Foggy]

I understand, as I said though attitude to lending to this type of customer has changed significantly recently, meaning the typical advice of 'you won't be able to remortgage anyway. don't worry', seems invalid. I work in the industry and regularly come across customers who have been told this at the start, when in fact a remortgage has been available and they have been told they need to go down this route by their IP.

We, also, often come across people who have been given this advice -- by qualified professionals. I always advocate that people make themselves fully aware of the terms they are signing up to as well as the attitude of their provider (some use more "discretion" than others!) and be prepared for all outcomes.

[MerlinL14]

To be honest it's poor advice advising it's 'very unlikely' to secure a mortgage whilst in an IVA. It seems a lot of people who have entered an IVA on the back of advice like this have a shock when it comes to the time to release equity, as they find out it may be possible.

Lenders attitudes towards lending to people within an IVA has changed a lot over the last few years, whilst it may of previously seemed impossible; it's now very much an option for people in an IVA (provided they have the equity and it's affordable, but IVA rules follow this also) and there are lenders who will accommodate this.

The secured loan/second charge mortgage option is also available which increases the chances of being able to successfully release equity. Remember, a 12 month extension is normally only agreed on the basis that the debtor is not able to release any equity.

Mine is an opinion gauged from IVA experience, being on this forum for a good few years and reading stories of re-mortgage woes.
Can you cite how you came to believe my opinion is poor advice?

I understand, as I said though attitude to lending to this type of customer has changed significantly recently, meaning the typical advice of 'you won't be able to remortgage anyway. don't worry', seems invalid. I work in the industry and regularly come across customers who have been told this at the start, when in fact a remortgage has been available and they have been told they need to go down this route by their IP.

I never said "you won't be able to remortgage anyway. don't worry", I said it would be very unlikely, which you seem to agree with to a degree but choose to argue the semantics just to get your point over.