Lisa Thomas wrote:NB you will have interlocking IVAs, not a joint one.
The equity clause usually kicks in after year 5, not 6 on most standard IVAs - was yours always meant to be 6 + 1 instead?
We were told from Day one that our IVA would be 6 years and that there was an equity release clause, but no other methods were mentioned.
Foggy wrote:If you have the pre- 2014 terms they usually only offered the choice of remortgage if possible or extend if not. Later versions introduced secured lending. However the trend amongst a few firms is to now get an outside firm like Select or Perinta to examine the possibility of secured lending for an early exit loan -- which is used as the basis for a full and final offer to end the IVA early. Sometimes the figures do seem to stack up, but not always. If you have the earlier terms they cannot force other alternatives on you, but it is always worth exploring.
As we have so much equity in our house I would prefer to extend our agreement by a year rather than add a large sum to the mortgage. Another factor is that our son goes to University in September which would mean our payments in the last year reducing as we will have to support him - he will get minimum maintenance loan due to our income.
Lisa Thomas wrote:Are you sure it hasn't already been extended and you are already in the final year?
Please check your terms to see if it was definitely 6 years plus the year extension or 5 plus a year.
It was definitely a six year agreement from the start - can't remember whether this was because it was joint or because it involved business debt.
Shaun Vickery wrote:It very much depends upon who your IP is as to what they will require but I would keep your mind open to the options available to you before you jump to any decisions.
I don't see there much of an issue between which is my favoured option - a lump sum of approx. 30K which goes on to my mortgage and which I'll be then be re-paying for the rest of its term, or another year paying a reduced amount because of the change in circumstances (a second child at University).
I'm just concerned that we could be coerced into taking out a secured loan if, as I expect, the high street mortgage providers refuse an application to re-mortgage.
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