www.iva.co.uk

I have just paid the 26th payment of my IVA this month...34 to go!

I want to know if it would be wise to offer a full and final offer if I sold my house..as I want to buy a place with my partner. He doesn't have any credit problems and wants to rent out his apartment.

I have asked my IP and she says that the offer would have to be at least £35k and she seems to this would be accepted.

My house has been valued at £140k and I've got a £85k mortgage...had a redemption figure of £85k. Therefore this would technically give me £20k left as a deposit for my next house...obviously I would need as much as possible to put down on the new house.

I'm just not sure this £35k is a good offer or not. I owed just over £100k and my IVA is giving a dividend of 29p in the pound. I thought my last years payment was £15k but apparently as my house has increased in value they will want me to remortgage in the 4th year...therefore probably taking more than £40k if I got a 85% mortgage.

I'm a little confused. I want to sell and buy with my partner but we want to have as much equity for the next house. I know I have responsibility to pay my creditors first and foremost!!

If anyone can help that would be good. Theres still good old Northern Rock to come to the table apparently...is this normal...they've no claimed yet and I reckon they're ignoring my IP.

If your IP thinks it will be accepted then why not go for it. You have nothing to lose by trying.
If it would make you feel better, why not offer a little more to give you an even better chance.

I would be tempted to agree with the above.

House prices may well reduce in the next 10 months, taking you to the start of your 4th year. You may also find it difficult to get a re-mortgage at an affordable rate. Your creditors are the ones who ultimately decide and if it costs nothing to propose a variation to your proposal, you have nothing to lose having it put forward.

I am inclined to agree with Cybus. If the offer produces a return that is in line with your original offer, creditors would be better to take the money now rather than rely on your ability to raise equity during a final year, and of course it is better for you to move on.