Mortgage Term..

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Post by woolybully » Sun Feb 05, 2017 4:36 pm
Hello All

I've read through this (and other) forums quite a bit but cannot seem to find the answer to this one!

I'm approaching the equity release stage in the next couple of months and am wondering if the IVA company can force/insist on you extending the remaining term of any current mortgage to increase the chances of being successful? I understand the Protocol jargon but just wondered if it was insisted upon that I try to remortgage for a 20/25 year term when submitting applications?

I have 9 years left on my current mortgage so can I just apply for mortgages for, say, 10 years and send these in a rejections?

Any advice would be useful as this is really rattling my skull!! Thanks


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Post by Foggy » Sun Feb 05, 2017 4:56 pm
The IVA remortgage term will not extend beyond the latter of the debtor’s state retirement age or the existing mortgage term. So they will expect you to apply on those terms -- you will still get rejected in all probability anyway. Also the repayment should be no more than 50% of the IVA payment.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

Lisa Thomas

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Post by Lisa Thomas » Mon Feb 06, 2017 9:54 am
The first way to get out of this is check whether you have standard £5k minimum equitable interest in your IVA terms. Then if you can show you have less than this the clause will not kick in.

If you have more than this highly likely the year extension will end up kicking in.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: ... Z5k9ZcC2MA 01752 786800
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