Why bother to try to remortgage?

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kallis3

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Post by kallis3 » Sat Sep 25, 2010 1:54 pm
Do you need to tell them why you want it? Can't you just say that you're looking to remortgage? That way when they credit check you they're bound to say no anyway.
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back on track

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Post by back on track » Sat Sep 25, 2010 1:59 pm
i thought payplan would deal with this as they do when they send a estate agent out to value the property at the beginning.
mel if the valuation at the beginning is showing quite a lot of negative equity why do they still want this claus adding when they as creditors know full well you wont be able to re-mortgage anyway.
is it that they are just stuck in there ways as an extra year would save everybody including the ips all this extra paperwork.
surley just a claus to say you cant seel your house within this period is enough
cc received 6th January 2014 now upwards and onwards
 
 

kallis3

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Post by kallis3 » Sat Sep 25, 2010 2:19 pm
Payplan will get the property valued, but it's down to you to sort out any mortgage offers (negative or otherwise).

As regards the equity clause, I presume they still do it as who knows what will happen in the next five years? People who are now in negative equity could well have had a turn round in fortunes by then.

You can't sell your house without permission anyway.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Sensible77

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Post by Sensible77 » Sat Sep 25, 2010 2:46 pm
Hi, Kallis. It's one of the first questions they ask as part of the process as well as asking why I want to remortgage. I don't know if it's a recent thing due to the current climate.
 
 

kallis3

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Post by kallis3 » Sat Sep 25, 2010 2:55 pm
I didn't know that - perhaps they've had a sudden influx of queries for remortgages.

Why they can't give you the 'no' in writing though I don't know.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Post by back on track » Sat Sep 25, 2010 3:34 pm
Sensible77 wrote:

Hi, Kallis. It's one of the first questions they ask as part of the process as well as asking why I want to remortgage. I don't know if it's a recent thing due to the current climate.
thats my point,the creditors who do the voting on these iva's know full well upfront that you will not be able to remortgage no matter how much equity you have.
you simply cant access it
a pointless exercise
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kallis3

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Post by kallis3 » Sat Sep 25, 2010 3:45 pm
You obviously have been able to at some point in the past, and who knows whether or not we may be able to in the future.

The creditors are hedging their bets.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

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Post by back on track » Sat Sep 25, 2010 5:29 pm
yes your prob right,as i could get credit in the past.
since the banks went walkies last year they wont even lend there mothers anything so if you got this clause its still going to be a dead duck for some years yet.
but my point is this is just a paper exercise and will never in the next few years be anything but that.
i got the 12 month extension if i have more than £5000 equity so im hopeing i aint,otherwise a lot of running around for nothing and i would just prefer somebody to say just pay 6 years and thats that
cc received 6th January 2014 now upwards and onwards
 
 

kallis3

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Post by kallis3 » Sat Sep 25, 2010 5:37 pm
I know that I won't get a remortgage, mainly because of our ages. We will have more than enough equity.

I shall try though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Sensible77

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Post by Sensible77 » Mon Sep 27, 2010 8:13 pm
Another thing I've noticed when contacting companies regarding the remortgage is that the minimum some companies will consider is £20,000 and one was £25,000. As I'm trying to raise £16500 this would exclude me anyway. This led me to think that if the credit market was buoyant and they would lend to people in IVA’s then I would be looking at a secured loan at a higher than usual mortgage interest rate. However, I appreciate that this all academic due to the current climate, but things will no doubt change in the future.
 
 

MelanieGiles

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Post by MelanieGiles » Mon Sep 27, 2010 11:01 pm
Don't go near a secured loan if your proposal states re-mortgage. That is like saying an apple is a banana - and the secured loan rates on offer will be crippling for you into the future.
Regards, Melanie Giles, Insolvency Practitioner
 
 

leaKybrain

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Post by leaKybrain » Mon Sep 27, 2010 11:27 pm
Because we are just starting our process I've been looking at valuations on our house etc. They've gone down quite a bit in the last three years and goodness knows what will happen in the next 5.
 
 

Sensible77

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Post by Sensible77 » Tue Sep 28, 2010 1:31 pm
I doubt in the current market that I would even get a secured loan at any rate! As you say, the report says remortgage so I'll stick to that.

I’ve got two refusals in writing now so I’ll send them off to PayPlan and see what happens. I can’t recall if they said I needed two or three refusals and one offer, (as if that would happen), but as I’ve said previously, getting it in writing is proving difficult.
 
 

kallis3

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Post by kallis3 » Tue Sep 28, 2010 1:38 pm
I'll be interested to see what they say as we are with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

steviebluenose

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Post by steviebluenose » Tue Sep 28, 2010 2:24 pm
So if my equity is less than £5k then I dont need to bother. But if it is £10K then I am liable for 85% of that, which is £8500. So if I cant get a remortgage and I have to pay another 12 months is that 12 months of my standard monthly payment or is it £8500 divided by 12 ?? My guess is that I just pay another 12 months of standard payments. But it would be good to know.
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