loan to value remortgage

[shuli_b]

in my IVA it says that i have to remortgage 85%LTV in year 4.

so my question is what happens if the banks don't offer 85% LTV remotgages and offers only 75% LTV? will creditors still accept?

Also i've calculated that 75% LTV at the end of year 4 will be the same amount as my remaining mortgage at that time?

[ivas4us]

I think if its not possible to get the re-mortgage then they extend the IVA for 12 months depending on what your chairman's report says.

[kallis3]

Presumably if you can't remortgage to that amount, then your IVA will continue for another year.

Not 100% on that, you would have to speak to your IP about that.

I won't be worrying about mine until my fourth year.

Who knows what will happen to the economy in that time?

[shuli_b]

you're right i'll worry in four years time. i seem to be always looking for things to worry about especially when things seem to be going right.

[kallis3]

My thoughts exactly - if it's going ok, just let it run and then think about these things as and when they arise.

[kabby3]

First you have to have the equity to have that LTV. If you cant remortgage there may well be a clause in your proposal and chairmans report to give options if this situation happens. I am due to complete my IVA next June but currently I am in my forth year and had a 90% LTV clauses in my proposal and I have lost all my equity due to the property slump. After I supplied two valuations to my IP showing no equity in property they are apply for a variation and asking creditors what they want me to do option one is extending IVA up to another 12 months completing it in 2011 or nothing which would be great and I would finish it next June 2010. All of this is in your propsal and you should look at it and be aware of it, but dont panic. Melanie always asks for people to post exact wording on here as each propsal is very different xx Karen

[kallis3]

Mine states that if our equity is less than £5000 the property is taken out of the equation.

Again, it depends on the proposal and I certainly wouldn't be worrying about it at this stage.

[kabby3]

Melanie checked mine and because it was taken out in 2005 the equity clause does not apply to me....wish it did xx