F&F payment when we have equity

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Cherrybea
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by Cherrybea » Sat Mar 04, 2017 4:26 pm
Hi

Our financial position has improved greatly over the course of our Iva. We now both work full time and have both been promoted.

We are currently in month 48 so filling in our annual review before heading into year 5. We currently pay £700/month but wish to make a full and final offer after my grandmother decided to give us a lump sum if our creditors agree. What would be a suitable offer in this instance.

Also, if the offer is out of our reach what happens when they value our property and see there is over £20,000 equity? I can't see us being able to remortgage and would be happy to move into year 6. Can they make us remortgage and if so how?
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Foggy
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by Foggy » Sat Mar 04, 2017 4:46 pm
Hi -- at your current payment and assuming you would get a 12 month extension, your creditors are looking at getting £16,800, so your offer should be based around this amount -- I would think £15k would be a good offer.

If you carry on it is unlikely that you would be able to remortgage and would get the extension --- if they did manage to find a company that would remortgage, subject to the ceilings put in place by your proposal on payment level and term, they could force you to take it. Some firms try to persuade you to take a secured loan -- this is not the same as a remortgage and you are withing your rights to refuse. A secured loan was only introduced as an option post 2014.
Cherrybea
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Joined: Sat Mar 04, 2017 4:19 pm
by Cherrybea » Sat Mar 04, 2017 4:57 pm
Thank you.

Just to clarify when it comes to remortgaging do we try to do that or do the Iva company do it on our behalf?
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Foggy
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by Foggy » Sat Mar 04, 2017 5:08 pm
Cherrybea wrote:
Thank you.

Just to clarify when it comes to remortgaging do we try to do that or do the Iva company do it on our behalf?


Depends on the exact wording of your own equity release clauses but they are usually worded to say you do it. Some firms are enlightened enough to know that you aren't likely to be accepted and will save you having to jump through the hoops.
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