Remortgage application to release equity

5 posts Page 1 of 1
User avatar
Hannah.gd
Posts: 31
by Hannah.gd » Thu Mar 01, 2018 12:16 pm
Hi - looking for some specific help on how to apply for a remortgage to abide by the equity release clause in my IVA.

I have no idea what I am doing. I am in the middle of applying for a decision in principle online. I don't understand what I am supposed to apply for??

The IVA have advised the following:-

Estimated value of property is £84,000
85% LTV £71,400
Less:
Outstanding Mortgage £34,821.29
Secured Loan (CCJ) £1,987.80
Equity Available £34,590.91

In the letter from the IVA they state:- You will therefore be required to provide documentary evidence of at least two attempts to remortgage your property up to the maximum you are able to obtain not exceeding £34,590.91 and if successful introduce this into your arrangement before its completion.

When attempting to proceed with the remortgage application online, it asks what I owe with my current mortgage provider and what additional borrowing i wish to apply for (i've put in the amount of equity above). This then totals the remortgage to £69,412.20. I am completely confused.

Can anyone help me out please?
User avatar
Foggy
Forum Expert
Posts: 26105
Contact
by Foggy » Thu Mar 01, 2018 12:22 pm
In the application you are attempting to remortgage ... not just add the loan for equity ---- so the loan you are now seeking will be enough to repkace the existing mortgae and add to it an amount to release for equity ---- so, if, say you are looking to release £30,000, you need a loan of £37,000 to cover the existing lending, plus the £30k release --- so £67,000.

Clear as mud ??
User avatar
Hannah.gd
Posts: 31
by Hannah.gd » Thu Mar 01, 2018 12:27 pm
thanks foggy, i think i need you on speed dial :-/ :-/

i was confused because the IVA advise me to attempt to remortgage my property up to the maximum i am able to obtain not exceeding £34,590.91 :-/

I understand now that i have to apply for enough to cover current mortgage, any secured loans and for the release of equity.

Thanks again
User avatar
Hannah.gd
Posts: 31
by Hannah.gd » Thu Mar 01, 2018 1:16 pm
UPDATE: remortgage applications unsuccessful.

Just advising the IVA and awaiting their instruction.

Can’t wait to be out of this, I have been so stressed. :cry:
Paris2007
Posts: 1
by Paris2007 » Tue Mar 06, 2018 4:26 pm
Hi Hannah,

Congrats on getting to this stage. Nearly done!

Can I ask who your IVA is with please? we are with Aperture and they are claiming that they will appoint an external company to seek a mortgage on our behalf.
I'm not sure how I feel about this and it's not what I signed up to when I entered the IVA.

Also. Who refused your mortgage?

Best Regards,

Paris
5 posts Page 1 of 1
Return to “equity release”

Who is online

Users browsing this forum: No registered users and 0 guests