£5k equity ? Question

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stu1970
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by stu1970 » Wed May 17, 2017 3:08 pm
I'm 6 months into my Iva with Stepchange all ok upto now. My question is about the equity in my home after the 5 years. I now I'm probably going to have to do a extra 12 months has it will be hard to remortgage

So what I'd like to no is If the equity is 5k or 50k is it still the same ? I.e. A extra 12 months payments
Sorry if this is a silly question!
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kallis3
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by kallis3 » Wed May 17, 2017 3:13 pm
Not a silly question but your equity will be the same so it will probably be an extra year.
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Foggy
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by Foggy » Wed May 17, 2017 3:18 pm
As long as there is over £5k equity and you get the extension ( ie not able to release equity) it matters not what the amount of equity actually is. .... 12 months every time.
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stu1970
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by stu1970 » Wed May 17, 2017 3:24 pm
Thank you for the replys. Really helpful info
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stu1970
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by stu1970 » Wed May 17, 2017 3:42 pm
What if I am able to remortgage! How much equity will they want ?
If I have £5k equity or £50k equity. Is it just the value of a extra 12 months payments in 1 go
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Foggy
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by Foggy » Wed May 17, 2017 3:47 pm
stu1970 wrote:
What if I am able to remortgage! How much equity will they want ?
If I have £5k equity or £50k equity. Is it just the value of a extra 12 months payments in 1 go


It is usually 85% of your share of the equity -- but there are limits placed in your proposal as to the length of time you are able to borrow and the payment must not be more than half your IVA payment, both of which would limit the amount a lender would allow you to have.
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Michael Peoples
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by Michael Peoples » Thu May 18, 2017 9:39 am
The most important part of equity release is affordability. Given that the cost of the equity release cannot exceed 50% of what your IVA payment there should be safeguards there.
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