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Posted: Mon Jun 27, 2011 4:51 pm
by Lord Carson
My understanding of the equity situation is that a valuation is done on the property at end of year 4 of the IVA to try and ascertain the market value. That would then be compared to the outstanding mortgage balance to see what the value of the equity would be.
Now assuming there is some equity in the property you would remortgage and pay the equity over to the IVA.
What I don't understand is what lender in their right mind would provide that remortgage at a reasonable interest rate to someone just coming to the end of an IVA?
Also, if it is not a reasonable interest rate / mortgage deal, why would you accept it just to pay in to the IVA?
I would rather just extend the IVA for a year.
Posted: Mon Jun 27, 2011 4:57 pm
by kallis3
It is highly unlikely that you would be able to remortage - I have not heard of anyone on here who has been successful.
Most of us are now resigned to the extra year.
Posted: Mon Jun 27, 2011 5:02 pm
by Lord Carson
kallis3 wrote:
It is highly unlikely that you would be able to remortage - I have not heard of anyone on here who has been successful.
Most of us are now resigned to the extra year.
Kallis, you have made my day. That is exactly what I hoped would be the consensus on here.
In my situation it is likely that there will be a substantial amount of equity in the property at the end of the IVA term. Certainly much more than another 12 months of IVA payments anyway.
Posted: Mon Jun 27, 2011 5:09 pm
by kallis3
We also have a fair amount of equity and I know that we won't be able to remortgage and will continue on for the extra 12 months.
Posted: Mon Jun 27, 2011 6:17 pm
by kat68
i think people who have this clause, myself included are going to be financially far better off by having a remortgage turned down and extending iva payments for an extra year. just hope the housing market doesn't change to much and this is the case when it becomes my turn in four and a half years
Posted: Mon Jun 27, 2011 8:47 pm
by klutter
I don't know much about this so if someone could explain to me please, does this mean that at the end of year 4 if you can't remortgage your IVA lasts for another year (so 6 years instead of 5?)
Posted: Mon Jun 27, 2011 8:51 pm
by kallis3
That is pretty much what happens these days. I have not yet known anyone be able to get a remortgage.
On the plus side, it means that your IVA will finish in 6 years and you won't be saddled with extra payments in your mortgage.
Posted: Mon Jun 27, 2011 9:07 pm
by klutter
"On the plus side, it means that your IVA will finish in 6 years and you won't be saddled with extra payments in your mortgage."
Sorry I didn't understand that bit
Posted: Mon Jun 27, 2011 9:10 pm
by kazzafunk
If you pay an extra 12 months instead of remortgaging then after that year it's all over. If you remortgage, you will have that extra amount on your mortgage for x amount of years.
Posted: Mon Jun 27, 2011 9:17 pm
by kallis3
Exactly it kazza.
Posted: Mon Jun 27, 2011 9:20 pm
by Rod Newman
A very good point raised by Kazza there
Posted: Mon Jun 27, 2011 9:34 pm
by Foggy
kazzafunk wrote:
If you pay an extra 12 months instead of remortgaging then after that year it's all over. If you remortgage, you will have that extra amount on your mortgage for x amount of years.
And ... at a hiked interest rate !!