Re-Mortgaging

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Paradise Lost
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by Paradise Lost » Fri Jan 22, 2010 2:47 pm
Hi,

I have seen a number of re-mortgage questions recently and Brightside Mortgages were mentioned (I think). I rang Brightside Mortgages and were told that they had been bought out by Spire Mortgages. Is there still a Brightside Mortages and does anybody know of any other companies that could offer a re-mortgage. It is no go with my current lender (Northern Rock) as I have been put in the bad people's bit.

Thanks

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 4:05 pm
It is very difficult to obtain financing in the current market at any over 70% loan to value. It may be worth speaking to your IP who may know of firms that could help or more likely your IVA will be extended by twelve months.

 

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Paradise Lost
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by Paradise Lost » Fri Jan 22, 2010 4:18 pm
Thanks for the response. It is unlikely that I will be able to re-mortgage as I have only 5-10% equity. I spoke to GT about the re-mortgaging and they just kept quoting that if I refused to re-mortgage that I would be in breach so I will go through the hoops to prove that I cannot re-mortgage, but my real issue is with 12 months extension (I know that I signed up to it), but I am now in my 4th year and the thought of an extra year is more than I can bear at present.
It seems that if I could re-mortgage and only raise a £1000 then I would have fulfilled my obligations, but a year extension would mean another £15k of payments. I am contemplating going for a variation to offer them a lump sum at the end of year 5, assuming that I can get it from a family member, in lieu of the extension.
Any thoughts on this from anybody?

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 4:24 pm
If you have no equity there should be no extension and if there is an extension you should only have to bring in the amount of equity. The twelve months is a maximum. Get written confirmation from N Rock that they will not help and an up to date valuation from a local estate agent. This should suffice.

 

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Paradise Lost
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by Paradise Lost » Fri Jan 22, 2010 4:38 pm
Michael,

We initially offered £3k of equity by way of proceeds of re-mortgaging, but this was amended to say that the debtors must re-mortgage in the 4th year and make the proceeds available for the benefit of the creditors. If the debtor is unable to obtain a re-mortgage the arrangement may be extended by 12 months in order to allow contributions in lieu of equity.
This seems very open to interpretation as there is no actual specified amount of equity to be released. It just states that a minumum dividend of 48p in the £ should be achieved.

Thanks again

 

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MelanieGiles
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by MelanieGiles » Fri Jan 22, 2010 8:08 pm
"Contributions in lieu of the equity" - this is the key statement. If the equity is only £3,000 then you will not be asked to pay £15,000 if the duration is extended.

 

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back on track
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by back on track » Fri Jan 22, 2010 8:55 pm
my proposal states something similar.
if i cannot re-mortgage to release equity another 12 months will be added.
then it states if equity is less than £5000 then this is de-minus and will not be reason to fail iva.
i take it that if i only have £5000 or less equity then i dont have to re-mortgage and i wont have to do an extra 12 months.
its laid out a lot better than i explain it but thats the way i read it.
i think the release of eqity at the minute is a bit of pie in the sky on the creditors part but they must feel a bit better if they make you try and release it.
fair enough i suppose

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 8:59 pm
Same as mine, and you have pretty much summed it up BOT.

 

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Paradise Lost
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by Paradise Lost » Mon Jan 25, 2010 3:01 pm
Thanks for all the responses.

In summary my understanding is that I get the valuation and show that I have made efforts to re-mortgage. If there was any value that I could gain from re-mortgaging (up to 85%) but cannot due to the current environment, they could ask me to extend for a period to gain this via additional months of payments not carte blanche 12 months. If there is no equity they should not be able to ask for an extension just to gain more payments out of me.
I assume that they asked for the amendment from the initial £3k that was offered as the markets were different in 2006 and they would have hoped for a higher contribution following a re-mortgage in 2010. Who was to know that there would actually be less equity!

 

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MelanieGiles
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by MelanieGiles » Mon Jan 25, 2010 7:53 pm
I think your understanding is correct, but do check with your own IP for absolute clarification.
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