Remortgage application to release equity

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Hannah.gd

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Post 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?

Foggy

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Post 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 ??
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

Hannah.gd

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Post 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

Hannah.gd

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Post 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

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Post 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

catherine826

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Post by catherine826 » Thu Nov 22, 2018 7:15 pm
Just seen this. I'm with Aperture and they have just sent my details to an external company too. I really think they are barking up the wrong tree, my mortgage company declined any further lending. They also didn't advise me prior to my 60th payment that is what they were doing. I'm as stressed as I was at the beginning ! Just glad in was pre 2014.

alonso376

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Post by alonso376 » Sat Feb 06, 2021 6:50 pm
Hi,
The equity release at the end is a big worry for myself to. They basically want 40k added to my mortgage. I took a 7 year fixed rate out before starting IVA so will still have 2 years left fixed. My house is currently valued around 200k, by end of IVA I will have 88k owing so they'd say I'll have 112k equity.
I'd really much prefer to be denied the mortgage add on and pay another 12 months. They say most banks won't give the mortgage but with my equity I'm certain they will. I just wonder, say if I had some financial difficulties in the months before the application and I made a couple of late mortgage payments, would there be a chance they won't accept my application? How would this scenario be viewed at by IVA?

Foggy

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Post by Foggy » Sat Feb 06, 2021 7:47 pm
Sat Feb 06, 2021 6:50 pmalonso376 wrote:
Hi,
The equity release at the end is a big worry for myself to. They basically want 40k added to my mortgage. I took a 7 year fixed rate out before starting IVA so will still have 2 years left fixed. My house is currently valued around 200k, by end of IVA I will have 88k owing so they'd say I'll have 112k equity.
I'd really much prefer to be denied the mortgage add on and pay another 12 months. They say most banks won't give the mortgage but with my equity I'm certain they will. I just wonder, say if I had some financial difficulties in the months before the application and I made a couple of late mortgage payments, would there be a chance they won't accept my application? How would this scenario be viewed at by IVA?
The IP might get a firm to seek a mortgage for you ---- even if you do this yourself you will have to try more than one lender. If you miss a few mortgage payments, your lender might simply repossess due to the fact that you are obviously 'in over your head', with the IVA etc., and they will want to protect their interests. Not a wise game to play.

When is your equity due to be looked at ? There are currently temporary amendments to Protocol based IVAs due to Covid, which affect equity release, here: https://www.gov.uk/government/publicati ... a-protocol
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
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