Month 54

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by bridgey » Sat Sep 16, 2017 11:22 am
So, month 54 will be January 2018. Firstly, how has it gone this quickly! Have been dipping in and out of here periodically and it’s been a great help.

Secondly, we have the 85% release clause and I’m a little confused by it all, and how to work out whether a remortgage will be needed or if another 12 months.

Also, what are the chances of actually getting accepted for a remortgage?

Thanks in advance all
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by kallis3 » Sat Sep 16, 2017 11:32 am

You will need to get a valuation on your house and, depending on that, you may have to continue as you won't be able to remortgage. You'll need a couple of rejection letters (one from your mortgage provider) to send off to your IVA company.
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by Foggy » Sat Sep 16, 2017 12:05 pm
It also depends on who you are with and how your clause was drafted as to how they will interpret the clause and work it out. The usual and more commonly used way is thus:

House valuation x 85% less outstanding mortgage(s) equals equity.

Some use the less kind method of:

House valuation less outstanding mortgages equals equity. 85% of this figure is the releasable amount

If the equity ( whichever way they calculate it) comes in at under £5,000 the clause isn't triggered, no release attempt and no extension.
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