equity release

[cat 1]

Hello.I know I might be slightly think, but , could someone please re explain the 85% equity release thing again.My iva is for 6 years.I have to re mortgage at year 4.How much money will I have to give to IVA will my monthly contributions continue in the same manner as now? I think there is around £35,000 equity in the house currently but obviously that could be falling .My current mortgage is a fixed rate untill Jan 2011.Sorry I know exactly what I signed and just when I think I've got it I read something else that makes me confused again-easily done[:I]

[MelanieGiles]

You will raise equity against your property in year 4 by taking out further lending based upon a maximum 85% loan to value. If your IVA follows current protocol, your new mortgage payments will be limited to 50% of your then current IVA contribution, and if you are left with less than £50 you will no longer have to make any IVA contributions at all.

The best person to explain this to your properly is your own IP as they have detailed knowledge of your case, so if you do not understand ask them to put it clearly in writing for you so you know exactly where you stand.

[cat 1]

Thanks for that Melanie.I've emailed CS on a couple of occassions recently about my overpaying when I got some back pay.They owe me £170 approx.Initially they said I could get it back if I sent in wage slips.I did this and still haven't heard anything from January.I've emailed and tis hasn't even been acknowledged.Feel slightly miffed about this as when I was setting up the iva they were very prompt and proactive.Now the total opposite.I will try again though as I have this for 5.5 years still and I believe it's vertually impossible to change IP's.Cat

[MelanieGiles]

The firm are going through a bit of restructuring at the moment, so this might be causing some delays as staff are leaving in Nottingham and the files are being relocated to the North West. I am sure they will get to your query as soon as they can, but you might like to try e-mailing your IP directly as this often has the desired effect.

[yankeegal]

Wow I wasn't told that I would have to keep paying. I was advised that once they had taken the lump sum that that would stop my IVA, is this not correct?

[jpj]

The remortgage is more of an "on top of" in most cases.......if the IVA stopped after the remortgage it wouldnt be a 5 year IVA..it would be a 4 and a bit IVA!

If your house goes up in value dramatically it could produce enough to settle the IVA fully by paying your full debts plus statutory interest back...but i dont think it happens often!

[rollercoaster]

my OH proposal says that he will release 75% of his share of the equity.
The house is worth 195K and mortgaged 185K. the figure they have come up with is just over 4K. this is in the proposal. However that would be considerably higher than 85% LTV? [:0]

[jpj]

At those figures I dont think your required to release anything.

No lender would lend you any more than your borrowing is currently at.

[J-DOUBLEYA]

I believe that the mortgage needed would have to be a 'reasonable one' not a remortgage at any cost !

If there is no 'reasonable mortgage' available there should be no further equity release. I am unsure if they can ask for additional payments in lieu of the equity release though .

[Adam Davies]

Hi Yankeegal
Your IVA may well end once you remortgage during the fourth year,it will depend on the wording of your chairmans report
Regards