I will complete a (7-year!) IVA in April, so hope I will get my formal completion in June/July. The 7yr period was because the largest creditor was Amex and they insisted on 6yr, then, as we couldn't remortgage our property (I am 67 and my partner 79) they insisted on an extra year). If I am right it at least means that the IVA should drop off my credit record by July.
We still have a £200k interest-only mortgage which has to be paid off in full next April 2022 which is major issue. We also have a 2nd mortgage of £40,000 at a high interest rate which doesn't finish until 2036,
It looks like the only way we can settle the mortgage in full and in time is to take out an Equity Release Plan on the property which will just about clear the mortgages but release nothing more. We do not intend to take out the Equity Release Plan, probably through Age Partnership, until March 2022 – 9months after completion.
As background, we couldn’t release equity from the house at Year 6 as we could not remortgage then or now as it would be very short term and very expensive (5-8yrs) due to our ages and would probably not fully cover the whole of the mortgages either.
What do you wise folk here think?
2 other questions please:
* Is there anyone on here who has gone through Equity Release sometime after completing their IVA.
…and finally:
* Sorry for those who know this already or know more than me. There appear to be 4 different types of Equity Release. 3 of them involve taking out a Lifetime Mortgage (no payments made – the only risk for the provider is on the property itself). The other is a Home Reversion Plan which is seen as less attractive by most people. Does anyone have any experience of these types with a completed IVA, and which would be better as my credit rating will be very low for any “normal” mortgage.
Many thanks for any guidance. As always my questions are a bit messy!
Steve
I would seek specialist broker advice on this... the forum us lucky enough to have Ryan and Shaun, both independent mortgage brokers with years of experience in helping those with iva history.
I personally can vouch for Ryan who has helped us many times in last 10 years
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
You are correct on the IVA dropping off of your credit records soon after formal completion as those 6 years we always quote will have passed.
As for equity release: It does seem the only way out of the mortgage issues while allowing you to stay in your home. There is, I believe, a ceiling of 60 or 70% market value, so hopefully the figures still work.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Mon Feb 22, 2021 5:55 amluluj wrote:
I would seek specialist broker advice on this... the forum us lucky enough to have Ryan and Shaun, both independent mortgage brokers with years of experience in helping those with iva history.
I personally can vouch for Ryan who has helped us many times in last 10 years
Thanks LuluJ,
I hope Ryan or Shaun read this too.
Steve.
Hi Steve,
Wow, you certainly seem to of been through a tough time on this, so well done getting through it all.
I personally cannot advise you on the specialty of Equity Release, but i do have an Independent Adviser we work closely with who can help. Please get in touch if you would like me to pass your details on
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Hi Steve. Equity Release mortgage are really a separate area of specialism and, like Ryan, we do not specialize in this area. It does look as though your options are fairly limited though. I presume down-sizing would not ease the situation (financially at least) or be a viable option?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
