www.iva.co.uk

In my IVA at the end of year 4 , they require 75% equity of my half of the proprty value, which stands at £17,000 at today's value.

It would be very unlikely that i could obtain a re mortgage to pay this sum, and I believe that you cannot stretch an iva beyond 5 years? how do you pay the £17,000 or the balance of your iva if you cannot get a remorgage?/

This question always seems to be very uncertain whoever you discuss it with?

Can you advice?

Regards

Noel

Hi there, it is getting fairly common now to pay an extra 12 months payment in lieu of any equity that can't be raised.

Have you spoken to your IP? x

An IVA can if required stretch way beyond 5 years so dont let that worry you. Many seem to be set up to run for 6 years nowadays anyway. As Lesley has said it is more than normal now for a 12 months extension to be added and in my opinion this is preferential as it means you maintain any equity and dont end up having to take out a costly sub prime remortgage!!!

Paul

Hi there new to this so bare with me. I have no equity in my property whatsoever at the moment. I may have something at the end of my 4th year but it's unlikely I will be able to afford a ridiculous interest when I'm currently struggling at 3.5%. My lender has already written to me saying no further advances whilst in my IVA. So it looks like the 12 month extension for me..I have had scary letter through the door saying my house could be repo if I can't release equity. i will not name the company but if they send me a 3rd letter I might name and shame.

Loopy Linda wrote:

Hi there new to this so bare with me. I have no equity in my property whatsoever at the moment. I may have something at the end of my 4th year but it's unlikely I will be able to afford a ridiculous interest when I'm currently struggling at 3.5%. My lender has already written to me saying no further advances whilst in my IVA. So it looks like the 12 month extension for me..I have had scary letter through the door saying my house could be repo if I can't release equity. i will not name the company but if they send me a 3rd letter I might name and shame.

Welcome!

That sounds quite unusual. Did the letter suggest why the house would be repossessed? Do you have the option to automatically extend the Arrangement by 12 months, or do your creditors have to vote?

Oh I'm not sure whether they have to vote. I will find out. I hope not it was bad enough last time. can they force you to sell up if you have equity and can't remortgage? My IP did mention the 12 month option but don't no whether they need agreement from creditors or not..

Was the letter from your IP?

If so, it's best to phone and check what they mean. If it sounds confusing or a bit strange, then let us know and we'll try to help or explain.

No it was from a law company. Obviously picking people out from the register. I'm only 8 months in to my IVA so have a while to go yet. I'm on interest only so my mortgage balance isn't coming down and have no equity at present. i won't be dealing with them as I think they are trying to make a few quid trying to persuade me to end my IVA and take out other options whatever they may be. It didn't say?

Oh yes, quite right too.

Some of these companies are just vultures. Unless it's a letter from your IP or from your mortgage provider, I would just forward it to your IP and don't worry about it.

Take care.

I whizzed it in the bin. if I get another I will scan it over to my IP!!
Take care x