Sorry for all the questions that might sound silly.
Ive got the paperwork through today and in it, it says "You wouldn't be expected to release more net worth than is sufficient to repay your creditors their remaining balance in full" does this mean the debt before the IVA or the IVA balance?
Also, how does it work if there is an early repayment charge? would i still be expected to remortgage?
Also, i am currently with Virgin and i have spoke to them, they said even in an IVA i can still get the good rates i just wont be eligible for payment holidays etc, their remortgage is 80%LTV but the IVA paperwork says 85%, would they take this into account or would they demand i find another provider?
During an IVA you actually still owe the full original debt. You also owe the fees as well as possible statutory interest. So, come the day, around month 54, they will expect you to still attempt to release equity up to that total owing figure, less payments made to date.
The amounts you can borrow are limited by several factors: The lending policies of the lender, the payment cannot be more than 50% of your IVA monthly figure, the term cannot be extended later than retirement age or the end of your current mortgage, whichever is the later and, of course, 85% LTV.
To further complicate matters some arrangements use pre-2014 terms which state that they want a remortgage or an extension of 12 months. Some use later versions which have added in the option of a secured loan (second charge).
Some firms also take a new interpretation as to calculating equity in the first place for the triggering of the clause !
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