Mortgage in 5th year of IVA, possible?

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julie150
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by julie150 » Sun Jun 11, 2017 7:17 pm
I have equity in my home around £40,000
I owe around 10,000 of iva left to pay
( and just going into the 5th year , of 6 )
Can I pay it off and port my mortgage?
My partner wants to get a mortgage and add it to mine.
It's with the Halifax
I don't want to personally ask for more money on my mortgage .
But end up having both names on Mortgage ( at present its in my name only )
Is this an option for me ?
Thanks
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Foggy
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by Foggy » Sun Jun 11, 2017 7:42 pm
If you make a full and final offer then what you do with the house afterward is up to you -- however, you might havwe difficulty porting the mortgage until your credit file clears up -- and assumimg Halifax will even entertain you then.

With the current equity you will be looking at an extra 12 payments at least, so be prepared to be in the IVA a little longer.
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julie150
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by julie150 » Sun Jun 11, 2017 8:43 pm
Thank you
Ideally I want to sell my house at the same time as pay off what I owe the iva...
My partner want to sell his house at the same time ....
At the same time port my morgage ...
So I'm assuming this is not an option you say ?
We would have around 100,000 for a deposit between us....
Would I be better to get advice from a morgage company that deals with it ?
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julie150
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by julie150 » Sun Jun 11, 2017 8:46 pm
Why would I have to pay an extra 12 months ...
If I want to pay it all off and move at the same time ?
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kallis3
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by kallis3 » Sun Jun 11, 2017 8:52 pm
Personally speaking, I would wait until you have finished, even though it means the extra 12 months. Your mortgage company may not let you port your mortgage, and beware of having joint finances until your credit rating is clear.
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luluj
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by luluj » Mon Jun 12, 2017 3:28 am
You could speak to Ryan and or Shaun the forum mortgage experts. Both have helped lots of forum members at different stages of their iva.

There contact details can be found under the experts page.
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Foggy
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by Foggy » Mon Jun 12, 2017 7:04 am
I agree with Lulij -- have a word with Ryan and / or Shaun.

You will need to include the extra 12 months unless your payments / settlement cover the full original debt, plus fees and possible statutory interest (NOT just payments agreed under the IVA).
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Ryan
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by Ryan » Mon Jun 12, 2017 7:24 am
Lenders criteria's vary a lot on what they will and won't do. We'd be happy to advise on possible options.

Regards
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Lisa Thomas
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by Lisa Thomas » Mon Jun 12, 2017 8:58 am
Take care - if you sell the property without a variation order in place you could lose most or even all of the equity into the IVA (as the equity should be used to cover the balance of the debts in full plus the total costs and statutory interest).

There will likely be a restriction on the property due to the IVA so you won't be able to sell it without your IP finding out and having to give consent.

You could put forward a variation offer to creditors to sell the house ONLY if they accept the variation and you use some of the equity to pay the remaining contributions (including the 12 month extension) that would have been paid in had the IVA continued in the normal way.

The IVA will likely be extended for 12 months in lieu of the equity in your house - have a look at your terms.

You might find this video useful to understand this:

https://www.youtube.com/edit?o=U&video_id=PHfc85n39U4

For mortgage advice speak to Ryan or Shaun on the forum. I suspect you will struggle with this unless and until your IVA is completed, you have your CC, you have come off the IVA register and the 6 year anniversary has passed.
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Michael Peoples
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by Michael Peoples » Mon Jun 12, 2017 9:01 am
Your credit file will be severely damaged for six years from the date the IVA commenced so it may be best to wait until this time before buying somewhere else. However you could still close the IVA down with an offer from the sale proceeds or even a small secured loan.
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