Will I be able to re mortgage or should I just keep paying?

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lucy887
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by lucy887 » Tue May 30, 2017 10:11 am
I have an Iva and I am in my fifth year. In August they want to see if I can re mortgage. I am working round the clock have no life and they keep telling me I have to increase payments every year. If I can t re mortgage I'll have to pay another 12 months. I don't go out or do anything other than work. I would like to try to get out of it. I have around 45000 equity and house is worth 110000 . Do you think I'd be able to re mortgage or should I just keep paying. They are charging around 2000 plus a year for the Iva . I have put 33000 into the Iva Feb just gone and I am paying 972 a month. I owed around 42000 when started and if I pay at rate I am I will have ended up paying 56000 ? I am in the fifth year. I am at my wits end. I have no life and work all the time. Can you advise me?
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Lisa Thomas
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by Lisa Thomas » Tue May 30, 2017 10:14 am
You won't be able to remortgage so based on those figures the 12 month extension will likely apply to you.
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Lisa Thomas
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by Lisa Thomas » Tue May 30, 2017 10:15 am
The only alternative to continuing the payments for 12 months might be to get a third party to gift you a lump sum to make a full and final offer based on the remaining payments (inc. the 12 month extension)

https://www.youtube.com/edit?o=U&video_id=h4dozq9aGak
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Lisa Thomas
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by Lisa Thomas » Tue May 30, 2017 10:17 am
You always owe the total debts, interest and costs in an IVA.

By my very very rough calculations you would only finish early if you were able to pay c£68k back.

Therefore you will continue paying for the 12 month extension and anything left remaining after that is written off.
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kallis3
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by kallis3 » Tue May 30, 2017 10:29 am
Depending on which company you are with they may push you to get a secured loan - if so I wouldn't want to go down that route.
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Michael Peoples
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by Michael Peoples » Tue May 30, 2017 11:28 am
It sounds like this IVA has been sore on you and given what you say you should by now have seen a benefit. A secured loan may be an option as it would reduce your monthly payments by at least 50% and allow you to retain any extra earnings for yourself. It would be worth speaking to Shaun Vickery from Select and see if this is an option or perhaps a remortgage is the way to go.
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Shaun Vickery
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by Shaun Vickery » Thu Jun 01, 2017 2:10 pm
It may be possible to release some equity from your property in order to make an offer of 'full and final settlement of your IVA. It may actually even be possible to re-mortgage given what you say. It's always worth weighing up all of your options before you make a firm decision.
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Foggy
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by Foggy » Sat Jun 03, 2017 4:19 pm
I agree with Michael and Shaun. Whilst I do not generally advocate taking on a loan to clear an IVA, sometimes the figures DO work out and, at the very least, allow you a breathing space until your credit clears up and you can re-fnance at better rates.
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