Remortgage advice

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Rejjy666

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Post by Rejjy666 » Mon Dec 30, 2019 12:18 pm
Hi all, I'm new here and after a bit of advice. I am coming into the final 6 months of my 5 year iva. I have recieved the letter stating I must attempt to remortgage my home to release my share of the equity. The iva is in my name alone but my property/mortgage is joint with my other half. I was aware I would have to attempt to remortgage and if unsuccessful another year would be added to my iva term. Honestly, it would be a lot easier for me to have another year added to my iva, I really dont want to mess with my mortgage at all. Things arnt exactly great with my other half, she is aware of what has to happen but is not over the moon about it. My share of equity is approx 30k and I'm paying my iva £210 PM. Does anyone know if there is an option where I could just accept a 1 year extension to the iva or do I actually have to try and remortgage? If I do have to remortgage, what is the likelihood of being accepted for one with my lender. Any advice would be great, cheers.

Foggy

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Post by Foggy » Mon Dec 30, 2019 1:27 pm
I am afraid that you do have to jump through the hoops ! Currently an extension is still the most likely result.
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

abbiesmum2003

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Post by abbiesmum2003 » Mon Dec 30, 2019 4:16 pm
It is a requirement to try and remortgage and there are options to people in IVAs now.
We did it 18 months ago and it honestly wasnt anywhere near as bad as I was imagining it to be.
The repayment has to be less than your IVA payment (thats one of the clauses for equity release) so could only be up to £105 based on what you say your IVA is so either wont be an option in which case youll pay the year extension, or you wont borrow much against the house as what youre potentially anticipating.
If your IVA company suggests a chat with The Select Partnership id recommend them. They are very thorough and know the clauses it has to meet.

luluj

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Post by luluj » Mon Dec 30, 2019 6:47 pm
Try speaking to our forum mortgage experts and see if they can advise / direct ... Ryan and or Shaun ... contact details under ask the experts section
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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Shaun Vickery

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Post by Shaun Vickery » Thu Jan 02, 2020 12:01 pm
You do have to remember that one of the main reasons your creditors agreed your IVA in the first place is because you offered to try to remortgage in the final year to increase the amount of debt you would pay back. It isn't normally a choice that you are able to make between remortgaging or a 12 month extension. However, as Abbiesmum says, the reality of what it is possible to agree with your creditors is very often less daunting than many people expect and it would also enable you to settle your IVA once and for all. There may be an alternative if your mortgage is competitive too. My advice would be to investigate your options and then you can make an informed decision.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.

For individual, confidential mortgage advice see my details under the IVA Experts or go to http://clients.theselectpartnership.co.uk/

Rejjy666

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Post by Rejjy666 » Fri Jan 03, 2020 3:39 pm
Hi all, thank you all for your responses. Reading through the letter from my iva supervisor again and it seems I will not likely be able to remortgage anyway. They are asking me to attempt to release 23k equity, and from my understanding at no more than £105 increase in mortgage repayments, and with 11years left on my mortgage the repayments wouldn't cover the equity release in that space of time. I think 🤔.

Foggy

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Post by Foggy » Fri Jan 03, 2020 3:45 pm
Fri Jan 03, 2020 3:39 pmRejjy666 wrote:
Hi all, thank you all for your responses. Reading through the letter from my iva supervisor again and it seems I will not likely be able to remortgage anyway. They are asking me to attempt to release 23k equity, and from my understanding at no more than £105 increase in mortgage repayments, and with 11years left on my mortgage the repayments wouldn't cover the equity release in that space of time. I think 🤔.
The amount added to your mortgage payments in respect of the released element cannot, as you mention, exceed half of the IVA monthly payment. As for the term, this is usually the later of the current term or state retirement age, so it is possible to extend the term if you are young enough.
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

Rejjy666

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Post by Rejjy666 » Fri Jan 03, 2020 5:09 pm
Now I'm confused. It states in the terms of my IVA that any remortgage deal cannot extend the current term of my mortgage?

Foggy

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Post by Foggy » Fri Jan 03, 2020 5:24 pm
Fri Jan 03, 2020 5:09 pmRejjy666 wrote:
Now I'm confused. It states in the terms of my IVA that any remortgage deal cannot extend the current term of my mortgage?
If that is what yours says, then that is what they are bound by. The standard terms and conditions are often tweaked a little on various points, especially equity release. The version I mentioned above is as used in the 2014 and 2016 standard terms and conditions .... it may well have been different in earlier versions, or has been, as I say, 'tweaked'.
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

Shaun Vickery

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Post by Shaun Vickery » Mon Jan 06, 2020 1:23 pm
Depending on your circumstances, and the specific terms of your IVA, it may possible that the amount you need to raise is less than the £23k you mention. The only way of determining this is to go through the exercise, but at least you will know what options are available to you and then you can make an informed decision.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.

For individual, confidential mortgage advice see my details under the IVA Experts or go to http://clients.theselectpartnership.co.uk/

Rejjy666

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Post by Rejjy666 » Tue Jan 07, 2020 2:38 pm
Hi all
Thought I would update this, I applied to remortgage with Lloyd's bank but they declined my application as I failed there credit check. I've sent the documents off to my IVA supervisor and await the next instructions. They have only requested I try with one lender, of my choice, so I'm hoping I've done all I need to do to get the outcome which I wanted. Thank you all for your advise, it's nice to know forums like this exist to help others using your experiences.
Cheers.

Shaun Vickery

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Post by Shaun Vickery » Tue Jan 07, 2020 5:14 pm
Do you mind me asking which IP you are with?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.

For individual, confidential mortgage advice see my details under the IVA Experts or go to http://clients.theselectpartnership.co.uk/

Rejjy666

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Post by Rejjy666 » Tue Jan 07, 2020 5:28 pm
I'm with stepchange. They have been very helpful throughout the whole process so far.
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