I am not sure how to work out whether we have enough equity to remortgage

[karen wills]

I am in month 54 of my iva and have just obtained a valuation and redemption statement to see if we have enough equity to remortgage.

The valuation is 195,000 and our mortgage outstanding is £178,174.

It says in our document that if there is equity in excess of 85% loan to value having regard to the deminimis level of £5000.

I am not sure how to work this out.

[UpToMyNeckInIt]

...what it means is that you can only be asked to remortgage to 85% of your property value.

In your case, 85% of £195,000 is £165,750.

Assuming £195k is a reasonably accurate valuation, as you already have a mortgage of £178K, you should not be expected to remortgage, as your current LTV is a shade over 91%.

In a modern protocol-compliant IVA, this should also mean that your IVA concludes after 5 Years.

Run this past your IP to be sure, and check the exact wording of your IVA.

Good luck.

[Adam Davies]

Hi

You will not be able to secure a mortgage so your IVA may conclude after the five year point but it will depend on how your IVA is worded

Regards

[Course]

Sorry to hijack but how would you work it out if it was a joint mortgage and my partner wasnt in an IVA only me .. for example mortgage remaining £145,000 and house value £175,000

[UpToMyNeckInIt]

Course,

I belive (I'm in a similar situation), that only your half of any available equity is at risk (the other half belongs to 'the other half'!!!).

In your example however: 85%LTV of £175,000 is £148,750.

As you jointly only have £3K equity to release (so your equity available is £1,500ish), you should fall within the £5,000 'de-minimis' clause that most IVA's contain. You should not, if this is the case, be required to attempt remortgage and your IVA would not normally get extended for a 6th Year.

Best dig out the paperwork to be sure of your exact terms etc.

Good luck.