Hello! I have an IVA which is coming up to the end of its 5th year. Select Partnership are looking into a remortgage, the house is in joint names but the Iva is in mine only. Does anyone know how successful Select are? As I’m in a fixed term, and it’ll cost over £3K to get out, they’ve mentioned just getting an additional amount added to my mortgage? House is approx £165K with o/s mortgage of approx £117K. We were told when we signed up for the IVA that we would just end up paying a 6th year but the person at Select has told me they’ll release equity...
Just worried for our future....
Read your equity release clauses carefully, as there are limits applied. The chances are that your proposal says "remortgage or extend" .... Select will give you the option, if they can find a remortgage product which fits in with the proposal limitations, you have to take it, unless they can get better terms on a secured loan, when you could go for that. If they come up with neither then the extension will apply.
Now, if they cannot find a remortgage product, but can find a secured loan you do not have to take the secured loan and, again the extension will apply. Do look at the figures with an open mind -- I have seen examples where the secured loan is not that far off, overall cost-wise, from the extension, but will, of course, save you a year in the IVA and release you from your obligations to your IP and creditors.
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