Month 54

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1
User avatar
bridgey
Posts: 115
by bridgey » Mon Jan 01, 2018 6:20 pm
53 months seem to have flown bye and we’re now looking to arrange the valuation.

I can’t fully remember the options, remortgage was one and 12 month extension was the other I think.

What are the chances of remortgage now and what does that mean? Would it end the IVA?

Thanks all, and a happy new year!
User avatar
Foggy
Forum Expert
Posts: 24433
Contact
by Foggy » Mon Jan 01, 2018 6:32 pm
Hi --- the chances of a remortgage are slim and the extension is the likely outcome --- assuming the clause is triggered --- your IVA will not be under post 2014 terms, so the secured loan option should not be pursued.

A remortgage, if it was achievable, does not bring the IVA to an end and payments would continue for the agreed term.
User avatar
bridgey
Posts: 115
by bridgey » Mon Jan 01, 2018 6:38 pm
Foggy wrote:
Hi --- the chances of a remortgage are slim and the extension is the likely outcome --- assuming the clause is triggered --- your IVA will not be under post 2014 terms, so the secured loan option should not be pursued.

A remortgage, if it was achievable, does not bring the IVA to an end and payments would continue for the agreed term.


Thanks Foggy. So a (slim) possibility of a remortgage (of x amount, again can’t remember or find the exact amount) and pay remainder of term (6 months).

Or

12 month extension at current or new rate dependent on I&E calculation.
User avatar
Foggy
Forum Expert
Posts: 24433
Contact
by Foggy » Mon Jan 01, 2018 6:48 pm
bridgey wrote:
Foggy wrote:
Hi --- the chances of a remortgage are slim and the extension is the likely outcome --- assuming the clause is triggered --- your IVA will not be under post 2014 terms, so the secured loan option should not be pursued.

A remortgage, if it was achievable, does not bring the IVA to an end and payments would continue for the agreed term.


Thanks Foggy. So a (slim) possibility of a remortgage (of x amount, again can’t remember or find the exact amount) and pay remainder of term (6 months).

Or

12 month extension at current or new rate dependent on I&E calculation.



That's about it, Bridgey. The equity amount will be 85% of your share of equity (there are conflicting ways of arriving at that, these days). assuming you trigger the clause by having more than £5k equity. There are also other limitations, depending on the exact wording of your own clauses --- usually the remortgage cannot go beyond the end date of the current mortgage and the repayment cannot be more than 50% of the IVA payment.

There are so called "early exit loans" available these days, where you raise a lump sum based on the 12 months repayments plus the 6 outstanding, secured on the home to make a full and final offer --- but, many do not agree with raising further debt for this purpose and, indeed, some creditors refuse to accept the offer on similar grounds.
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 9 guests