is it possible to remortgage whilst in an IVA

[dave.d]

I need to add an extentsion to my property due to an increase im my family, we currently have approximately £80,000 in equity and would have to remortgage £30,000 of this, we have an IVA is it possible to remortgage whilst still being in an IVA.

[neverending]

Hi
You will need to seek advice and permission from your IP.
The problem that you face are that the increased mortgage payments will decrease your disposible income and hence the payment into your IVA.Also it may affect your equity release[presuming you have this clause]in the final year of your IVA.
Have you thought about remortgaging to offer a full and final settlement of your IVA ??
Regards

[MelanieGiles]

Hi Dave

Neverendings suggestion of a full and final settlement is a good one - and you have the perfect reason as to why this is now sensible if you could raise sufficient money.

If your current mortgage is on a repayment basis, you could look at taking out the new on on interest only. Is the house jointly owned, and is your partner also subject to the IVA? Equity release provisions do only affect your share of the equity, so there is nothing stopping your partner using some of her share to fund the extension.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk