www.iva.co.uk

Sorry for asking further basis questions....but here I go anyway. When it states that you have to remortgage for up to 85% of the value of the property.....does this mean that if your house is worth £120K, the most you can remortgate upto is around £100K?

Meash - It is highly unlikely that you will be able to remortgage at all.

It is worth looking at your proposal and see what it say about this - you may have to go into the motions of remortgaging only to be turned down.(pointless exercise really):-)

You also may be asked to have the property valued at current prices.

I have checked my chairmans report and it says that I have to remortgate in my final year and release any accrued equity up to 85% of the value of the property. Why would they put it in if I am unlikely to be able to do it? is it a precurser to extending for another year?

A few years ago - it was a lot easier to remortgage - even with Sub prime lenders and an active IVA, as you know thats changed, in the unlikely event of a sudden property "boom" i suppose the creditors are covering all their options.

Best person to find out what will happen (in your case) is your IP.

we had to try to remortgage 12 months ago ...estate agents were not interested in valuation of the house ! so had to do extra year

We're all in the same position now - I haven't known amyone who has been able to remorthage.

Unless the marketplace changes over the next few years, the current equity release provisions are pretty worthless as no-one can really obtain a remortgage if they are in an IVA. So the most likely option is an extension of the IVA for a further year.

There was one chap a couple of weeks ago who was offered a mortgage. God knows how but he wasn't pleased!!!

I don't remember that one!

It was at sub prime rates (obviously) so everyone advised he go and get his house revalued until he got one low enough for the de minimus provision to kick in (bit dodgy in my view like hiding a windfall)!

I would prefer to call it fraud!

I still don't remember it!

I think so many people now see the equity clause as a formality that there will be a few disgruntled people over the next few years as lending criteria starts to ease up.

In one way it wouldn't bother me if I could remortgage as the IVA would be finished in the five years and I would still be paying less. In the long run though the extra twelve months is preferable.

I can't see the lending criteria easing up for a while yet though.

Be my turn next year to find out. x