remortgaging so I can pay my IVA off early

[Debt Free]

Hi

I am 27 months in to a 60 month IVA.
I pay £390 for the first 56 months and the last 4 months I pay £450. 4th year equity release of £5k. So all in all £23,640 plus if possible £5k equity release.
I think im paying back .46p in the pound.

My question is im thinking of remortgaging so I can pay my IVA off early.
If I have already paid off £10,530 what would you suggest is a good offer of a full and final payment.

What would I be saving in IVA fees ? Im with DFD.
I know the experts will reply I need to offer the full amount but I know thats their jobs. Can other people who have done this before give me an idea of what % they paid backon the remaining IVA.

Thanks

[Adam Davies]

Hi
You will need to return the original dividend unless there is going to be a change in your circumstances that will stop you from paying your monthly IVA.So in your case it will be the remaining 18k less the savings on IP fees[say 2k].As long as the 5k equity figure was set in stone then you will be looking at around the 15-16k mark.
My original IVA was for 29p dividend and I ended up paying 36p in a full and final.
Regards

[MelanieGiles]

In today's creditor led climate, where they already have the benefit of a final year equity release (are you sure that this is fixed at £5,000 or was that just the estimate used for the statement of affairs?) I would doubt whether you are offering an acceptable option for credtors, unless you are unable to continue with the payments due to a change in circumstnaces.

If the final year equity release is actually fixed, then an offer based upon the original dividend would be the most sensible way forward and if I were your IP that is what I would encourage you to do - of course it is also based upon how much you could afford to raise now and the value of your property now compared to its value when you first entered into the IVA.

Let us know how you get on.

[Andrew Graveson]

Hello Debt Free,

I suspect Mr or Mrs Skint may be able to assist with a view on this.

They have a unique insight into the situation you are considering.

[Lisa2009]

Hubby had his IVA with DFD, his dividend was estimated at 28% which included an estimated £15000 form house equity.
However, due to illness and a LOT of stresses in the family he asked for a variation meeting.
The creditors.
His offer was accepted and a dividend of 25% was to be reached.
Its not always easy when theres an equity release clause but in our letter to DFD we went into great detail of illnesses, arguements and upsets and the fact that because of all this it was unlikely the IVA would run the full 5 years.
The offer was accepted 2 years early.

You must have very good reasons to want to end it early, reasons that could threaten your IVA in the near future.

[Lisa2009]

Oh hello Andrew LOL you posted that as i was typing

[Andrew Graveson]

Fastest finger first!

[Lisa2009]

By the way Andrew a little off the subject but SHAMELESS is on i hope your watching.

[Lisa2009]

Debt Free check through the papers you got when the IVA was accepted and in there it should tell you if the 5k equity is an exact or just an estimate. Then perhaps a call to somebody at debt free to see where you stand.
I would if i were you, try to offer as close to the agreed dividend as possible for a slightly better chance of it being accepted.

[Andrew Graveson]

Hello Mrs S.

Meant to watch it then forgot the moment I turned the laptop on.

I think Mr S said it's on again tomorrow?

I hope you had a more pleasurable journey home than we did? Two sandwiches, two packs of crisps, two drinks, £15 at the motorway services. Dreadful.

[Lisa2009]

Not on tomorrow but its on chan 4 next tuesday at 10pm so try to watch.

We had a good journey home. The traffic was nice and clear all the way through. Got back at around 10.20 and we left just after Mel and you.

[Lisa2009]

Oh and i hope Melanies little green men have gone home LOL. mr skint still got the cork if they need containing. LOL LOL

[Andrew Graveson]

Glad to hear that. We got back at 0130am so I think Melanie has every excuse for her alien visions. I'm sure the visions have nothing to do with the empty bottle from which the cork was liberated.

[Lisa2009]

Was only joking, i would have been seeing green, pink, purple and red men after the journey you both had. I though ours was long enough and it was only 40 minutes.

[Andrew Graveson]

We'll have to ask Melanie as to exactly what variety of coloured aliens she witnessed!