I'm coming up to month 54 of my contract and so I'm expecting the remortgage clause to kick in next month. The value of my property is approximately 475k - 500k with an outstanding balance of 327k so we have a fair amount of equity. We currently pay £465 a month into the IVA with a family of 4 with monthly income around 6k a month.
Even If we were able to get a remortgage and extend it from the current remaining 14 years to 32 years (retirement age and we'd be looking to do anyway at some point tbh) then is it expected that we would have to repay the total amount of debt that we owe in the IVA contract? or do we have to only agree a figure with the creditors and contribute a percentage of the remaining debt (i.e like a full and final settlement offer would be if we offered less to end it)
I'd obviously love to end this thing ASAP and move on but I want to know whats best for be financially. i.e if its better to extend it for another year and we get to write off a large chunk then it could be a better option.
Remortgaging, though not impossible, is highly unlikely. If you could remortgage you would be expected to pay off as much of the full original debt, plus fees and possible statutory interest as possibe. However the release clause has it's own glass ceilings (assuming you have the usual clauses): The cost of the remortgage would not exceed 50% of your normal IVA payment and the remortgage term does not extend beyond the later of the debtors state retirement age or the existing term. Those ceilings would, in themselves, limit the amount which could be released.
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