What will happen if we can't re-mortgage at end of IVA?

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beverley824

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Post by beverley824 » Mon Oct 12, 2020 1:10 pm
My husband and I have separate IVA with different companies when it finishes in five years time I will be 63 and my husband will be 65 both of us are not able to work as we are full time carers for our 2 disabled sons we have an Interest only mortgage we may have a small amount of equity in the property we bought the property for £112.000 and still owe £108.000 we will have to re-mortgage the property as with us both not being able to work and us having an interest only mortgage I don’t think any mortgage company will do a re-mortgage for us plus with our ages, We tried to re-mortgage to pay off our original debts before we took an IVA and were told as we had massive debts a interest only mortgage and not much equity in the property we were not allowed We were not even allowed to switch on to a repayment mortgage What will happen at the end of five years will we have to get a valuation and will we have to ask our mortgage company about a re-mortgage will we have to prove to both companies that we can’t do one or will we have to sell our property thank you for your help

Foggy

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Post by Foggy » Mon Oct 12, 2020 1:37 pm
First you will need to show that there is more than £10k (£5k for each of you) equity. If there isn't then the IVA will end at the 5 year mark. If there is you need to jump through the 'attempting to remortgage hoops' -- it is likely that you will not be able to remortgage, as things stand ( but this might change over 5 years or so) and then the IVAs will be extended by a 12 extra payments instead.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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