4th year IVA remortgage advice needed please

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1
User avatar
Posts: 13
Joined: Wed Jan 06, 2016 3:17 pm
by Andydr78 » Wed Aug 02, 2017 7:48 am
Hi all.

I am now at that stage in my IVA that I have been asked to release equity from my house, I have approx. £100k of equity jointly shared with my wife who isn't part of this IVA but after reading the original proposal papers (2012) I have noticed that an equity release sum has been specified at £6k.

there is no specific statement on the proposal that this amount will be changed but obviously my equity has increased since then, have any of you seen this before and am I within my rights to insist that the £6k figure be adhered to?

I realise that re mortgage is unlikely but due to the large equity it might be possible so I need to get all of my facts in order before arguing the case for sticking to that sum instead of winding up with a £30k remortgage.

many thanks
User avatar
Michael Peoples
Industry Expert
Posts: 15067
Joined: Mon Nov 03, 2008 12:36 pm
by Michael Peoples » Wed Aug 02, 2017 7:51 am
A remortgage is very difficult but you could borrow money via a secured loan. Regardless of the size of the equity you can only increase your monthly borrowing costs by a maximum of 50% of the IVA payment so perhaps £6k is all you could afford.

I suggest you contact Shaun Vickery from Select who posts here as he has access to these type of products and then in a couple of yeasrs when your credit file has cleared up you can look to remortgage the lot if you want to.
User avatar
Lisa Thomas
Industry Expert
Posts: 5828
Joined: Wed Dec 03, 2014 10:26 am
by Lisa Thomas » Wed Aug 02, 2017 8:09 am
Do you terms not include the option of extending for 12 months instead? I would think this would be the better option.

Or getting a third party to 'gift' you a sum equal to the amount £6k or one years worth of contributions, whichever is correct, and do a full and final offer instead.

User avatar
Forum Expert
Posts: 23158
Joined: Fri Dec 17, 2010 11:14 am
by Foggy » Wed Aug 02, 2017 8:30 am
It is possible that, lurking somewhere in the returns section, is the word "estimated". Rarely these days are figures quoted at the outset definitive and are usually quotes as quide figures to allow creditors to compare the merits of the proposed IVA versus other solutions.

However, as Lisa mentions, the usual clauses allow for a 12 month extension instead of remortgaging, as long as you have tried, and failed, to remortgage --- perversely, the higher the figure thay ask for the harder it will be to get it.

At the moment I would concentrate on getting a couple of refusals and go for the extension.
User avatar
Forum Expert
Posts: 71603
Joined: Mon Mar 17, 2008 4:02 pm
by kallis3 » Wed Aug 02, 2017 8:49 am
We did that - had loads of equity but got a couple of refusals and just had the extension.
User avatar
Industry Expert
Posts: 612
Joined: Thu Nov 03, 2011 10:03 pm
by Ryan » Wed Aug 02, 2017 8:58 am
Hi Andy,

As has already been mentioned re-mortgaging for many people isn't an attractive option as it would mean moving your whole mortgage to possibly a much higher interest rate than you are already paying but it's obviously down to whatever option you feel suits you best.

6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 24 guests