Hi, I am new to this. Have seen many posts referring to some clause about 4th year re-mortgage or equity release. I have no idea what this is, but in my circumstances there is no way I could remortgage, Could anyone explain please?
Creditors expect clients to remortgage in year four to a maximum of 85% loan to value. If it is not possible to do this because of income, age lack of products etc the IVA can be extended by 12 months for additional payments to be made.
Hi Tony. I had skin cancer over a year ago, nothing to worry about as mine was the one that rarely spreads, but this now affects my husband and myself getting another mortgage. My husband would never be accepted getting a mortgage in his name only on his wages, as such a remortgage is a no-go. Kal
If there is equity and you cannot remortgage you will almost certainly face a six year IVA. You could try a five year and exclude the house on the grounds that you cannot remortgage but it is likely that creditors will extend the term. It there is no equity now bankruptcy may well be the best option as you will not have to worry about any subsequent recovery in house prices given you will benefit and not your creditors.
House is at moment in negative equity. If in 5 years house is still in negative equity and no chance of remortgaging, will creditors then expect to extend period of IVA?
I too am confused about this clause. Do I understand it right that if I remortgage, the creditors get any equity, my monthly payments stay the same, yet my mortgage has increased?? Surely this is only putting us back on the rocky path of debt, by increasing our mortgage payments which will still be there once IVA is complete??? I am only in the second year of IVA, but am worrying about this already.
If there is no equity in year four the IVA will cease at the end of year five. If there is equity and can be released the IVA payments will reduce or cease to take into account the increased mortgage payments. If there is equity but it cannot be raised by way of remortgage the IVA will be extended by up to twelve months.
Ok, thanks Michael, all has now become clear. So I can only hope house stays in negative equity, otherwise will have IVA extended by another year. At least I can prepare myself for this.
Currently at this stage of my Iva and am waiting a variation regarding my equity (or lack of it) at beginning of IVA had about 14000 now have about 2000 so I have a clause which states that IVA could be extended up to 12 months in lieu of equity.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Most of them will say that if you have equity below £5000 then the house is taken out of the equation and your IVA will conclude after 5 years.
Check with your IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kalf wrote:
Ok, thanks Michael, all has now become clear. So I can only hope house stays in negative equity, otherwise will have IVA extended by another year. At least I can prepare myself for this.
If the house is in negative equity you do realise that the likelyhood is if you go BR you would KEEP the house without any hassle??
Have a long hard look at the options and please dont avoid bankruptcy because of any stigma etc. It serves a purpose and may be the right way forward for you.
Make sure you arent in careers that may be affected by bankruptcy before deciding. And keep posting.
Paul.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
