Releasing equity

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Slekclarke
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by Slekclarke » Thu Jun 07, 2018 5:32 pm
Hi, my five years in IVA is this month, I also have three months extension. I sent my rejected applications for a remortgage off to aperture and I received letter back to say my final payment will be on 30th October 2019.

However today I have received a letter to advise their initial review indicates that I should be able to release equity and they have referred my case to a specialist broker, The Select Partnership. Who are these and why after first letter are they now saying this?
My house was valued at around £115,000 and my mortgage is £55. What would the remortgage I have to pay. Bearing in mind I have paid back £0.94 in the £1.00 of my debt.

Please advise.
Thanks
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Foggy
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by Foggy » Thu Jun 07, 2018 5:58 pm
Select Partnership are a firm of brokers that Aperture have recently started using to investigate the possibilituies of releasing equity. They will often come up with secured loan and, more recently, have started to find remortgage deals. If you have the pre- 2014 conditions you cannot be made to accept secured lending (whch is not the same beast as a remortgage). Despite the unenviable position they are in Select are a reputable firm and, in fact, adhere to the agreed terms more closely than Aperture have been doing recently.
If they do find a remortgage deal, your possible defence could lie in the exact wording of your equity release clause. For instance, if it says, if you produce 2 rejections for a remortgage the extension will apply -- you have complied with the agreed terms (might take a bit of an arguement!).
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Slekclarke
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by Slekclarke » Thu Jun 07, 2018 8:34 pm
If they could find me a re-mortgage, how much would it be for? If I have the 12 month extension I would pay back £8,592. And bear in mind I would have paid back at least £0.94 in the £1 of my debt. My Equity in total is around £55k. So how much would they make me remortgage for? :cry:
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Foggy
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by Foggy » Fri Jun 08, 2018 6:56 am
Slekclarke wrote:
If they could find me a re-mortgage, how much would it be for? If I have the 12 month extension I would pay back £8,592. And bear in mind I would have paid back at least £0.94 in the £1 of my debt. My Equity in total is around £55k. So how much would they make me remortgage for? :cry:


The ceiling figure is however much it would take to pay back the full debt plus fees. This is also limited by caps on repayment in your terms: They cannot ask you to repay more than 50% of your current monthly IVA payments towards the extra lending. nor can they propose a term longer than the existing term or which will take you past state retirement age (depending on how your clauses are worded). Finally the total lending cannot exceed 85% LTV.
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Slekclarke
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by Slekclarke » Fri Jun 08, 2018 2:22 pm
I have looked at my IVA terms, and it states a re-mortgage of £8145 or 12 months extension so does this mean I can't be expected to re-mortage for anything more?

Thanks for your help
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Foggy
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by Foggy » Fri Jun 08, 2018 2:58 pm
Slekclarke wrote:
I have looked at my IVA terms, and it states a re-mortgage of £8145 or 12 months extension so does this mean I can't be expected to re-mortage for anything more?

Thanks for your help


If that is the stated figure, rather than an estimate, I would think so.
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