What proof will be required to show that I can't remortgage

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darren312
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by darren312 » Tue Jun 19, 2018 8:25 pm
I'm considering taken out an I'VE due to the amount of debt but I'm concerned about having to mortgage near the end of the IVA. What proof do you require to prevent remortgaging to release equity. I think I would struggle to re mortgage but I don't want to be worrying for 5 years and then I'm forced to do this.
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luluj
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by luluj » Tue Jun 19, 2018 9:51 pm
Couple of screenshots of refusal or emails if you apply online should be enough.
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Foggy
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by Foggy » Wed Jun 20, 2018 6:51 am
darren312 wrote:
I'm considering taken out an I'VE due to the amount of debt but I'm concerned about having to mortgage near the end of the IVA. What proof do you require to prevent remortgaging to release equity. I think I would struggle to re mortgage but I don't want to be worrying for 5 years and then I'm forced to do this.


Different firms approach equity release in different ways: Some still use the pre-2014 or R3 terms which require you to attempt to remortgage or, failing that, you get a 12 month extension. Some use post 2014 terms where they add in a secured loan to the requirements (easier to get than a remortgage). So, first, ask who you are going with to explain how they treat equity release. Do not be fobbed off by, "Oh, it will probably be an extension as you won't be able to remortgage". Some are now finding out that, with unforseen changes in the mortgage market, remortgaging is again becoming a possibility that you need to be prepared for.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 20, 2018 8:09 am
Not all IVAs will have that term in - it depends whether your chosen IP uses the IVA protocol template.
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Ryan
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by Ryan » Wed Jun 20, 2018 8:20 am
We've done letters previously for Clients saying they are unable to re-mortgage and these have also been acceptable.

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Shaun Vickery
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by Shaun Vickery » Mon Jun 25, 2018 12:42 pm
The mortgage market and IP/Creditor expectations are likely to have changed considerably by the time you are required to release equity. It may be that you have to accept that you may have to release some of the equity in your property which, after all, forms part of your proposal to your creditors.
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