Would IVA firm insist I remortgage after 5 years?

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yvonne
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by yvonne » Sat Oct 07, 2017 6:45 pm
I have a mortgage my finances are very stretched if I took out an IVA would they insist I remortgage after 5 years? Plus what are the reputable companies, how can you tell and their fees does that vary from each company?
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Foggy
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by Foggy » Sat Oct 07, 2017 7:19 pm
yvonne wrote:
I have a mortgage my finances are very stretched if I took out an IVA would they insist I remortgage after 5 years? Plus what are the reputable companies, how can you tell and their fees does that vary from each company?



Your equity will be assessed at month 54 and,if more than £5,000 (and assuming the usual clauses) you will be required to attempt to remortgage. At eht moment this invariably fails and so the IVA is extended by 12 months instead. Some firms use post 2014 terms, which include the possibility of trying to get a secured loan instead of remortgaging. but many still use pre- 2014 terms or even R3 terms.
Fess vary slightly from firm to firm, but are generally amended by the creditors to, usually, 15% of payments, plus the initial setting up fee -- but these cone out of the regular payments and you will not notice.
As for reputable firms .. have a look around the forum to see who people have been using, or choose a few and ask for opinion from those who have used them.
I am not allowed to suggest specific firms, but I would suggest smaller / medium companies, who will treat you as an individual, rather than the "IVA factories".
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Michael Peoples
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by Michael Peoples » Mon Oct 09, 2017 9:23 am
It is part of the proposal that you seek to release equity at an affordable level in month 54. This is not unreasonable as in bankruptcy creditors would be entitled to the entire equity and you could lose your home whereas in an IVA you do not. Most people cannot remortgage anyway but this may change over the next few years.
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