www.iva.co.uk

We have just been sent our year 4 statement, along with this we have been asked to provide property valuation, redemption statements etc also a copy of a proposed mortgage offer. How much do we have to raise to pay the company? our mortgage is 130k we have secured debt at 35k. The IVA was for 35k and we have paid everything upto date... Lots of questions:

How do i get mortgage?
Do I get one to cover all Debt?
How do i work out what to give IVA?
What if we get refused?
Shall I get a financial advisor to help get a mortgage?
How do I stop panicing?

Hi and welcome to the forum.

You are highly unlikely to be able to remortgage and your IP company will know that. You should get your house valued, try a couple of mortgage companies and then send the rejection letters through to your IP.

Check your proposal/chairmans report to see what it says on there about what happens if you can't remortgage. Usually your IVA will contine for a further year in lieu of that money.

Please don't panic - there are a lot of us in the same boat at the moment, all coming up to that dreaded equity release!!

Once you have your house valued then your IP will tell you how much you need to try and release.

Do you have any equity in your property?

Hi and welcome! Congrats on getting so far into your iva - the fourth year marks seems very distant from where I'm standing LOL!!

Firsth things first - don't panic!!!

A local estate agent will be able to provide you with a valuation.

Your mortgage provider will be able to give you a redemption figure.

Speak to as many mortgage lenders as you need to to fulfill the equity clause requirement for refusals in writing (normally 2). You are very very unlikely to be able to remortgage although as you have more than 50% equity you may have a slim chance.

Don't worry about calculating how much you need to release, your IP will do this and it will be based on the equity clause in your proposal. Some clauses ask for 100% of the debtor's share of equity while others ask for 85% and I'm sure there are a myriad other variations on the clause.

If you can't remortgage and your proposal doesn't specify what happens next, you r IP will likely ask creditors to vary the terms of the proposal so you pay another 12 month payments at your affordable rate in lieu of equity. To be very clear, you do not have to pay the value of your equity in 12 months, you simply carry on paying what is affordable for a year. In some very rare cases creditors have asked for two years extra.

You could speak to Ryan, he's fast become our resident mortgage broker as he's so good at finding mortgages for people will a less than pretty credit history.

Take a deep breath! There are lots of people in the same boat who'll be along soon.

Xx

Scary use of the same metaphor Jan!

[:D][:D]

We seem to use various aquatic metaphors on here, boats,floating,sinking, drowning, treading water. ships coming in.
There must be more.
Perhaps we should run a competition to see who can get the most metaphors in a post?.
We could have 'Post of the Day', or 'Post of the Week' etc

Hi,

What happens depends entirely on the wording of your proposal, as other posters have said it seems that more recent IVA proposals will ask for a years payments if you can't remortgage and as Kallis says its practically impossible at the moment for anyone to remortgage, never mind those in an IVA. In our IVA we had a "best endeavours" clause which basically meant that we had to demonstrate that we had attempted to remortgage and if successful then the payment would essentially be a bonus for creditors. if we could not then our IVA completed as normal after five years which is what happened. I would suggest going to a mortgage broker who can shop the market for you, we did just that and one letter from him was sufficient to satisfy the best endeavours clause. Dont worry too much about this as everyone is in the same boat just make sure you do what is required under the terms of the proposal and you will be fine. Best of luck.

Stay Frugal

Firefox

I managed to get a valuation from a local estate agent via email and forwarded this to my IP and she was happy with this. 4th year review is going through as I type and I'll hear in due course I'm sure of my next steps. x

Sounds as though things are going well Lesley!!

Yes Jan all moving forward nicely now. Will update more when things are confirmed, I do know what is happening but not going to tempt fate with anything just yet. x

You're lucky! I won't know anything for another six months yet. Think I know the outcome though!!

Glad things are looking good for you Lesly...I can't believe you are so close now.

Sure things will work out for you too Jan. We can only give creditors what we have!

Thanks BOL - I know that I'll have the extra 12 months as there is a fair amount of equity in the house so I'm resigned to it.

I'm so looking forward to the end but to be fair the IVA hasn't bothered me much, enjoy maybe the wrong word but definitely having a good IP made it easier that is a fact. It's taught me a lesson I know I'll never forget too. x

You are nearly there Lesley.

Wish I could feel the same about IVA not bothering me to much but the end of the day there is not much alternative. First two years were not to bad but it has become much harder, as you say you have a good IP.

I am worried about my equity release clause as reading through my chairmans report it just says I have to pay across £25k in October next year it does not say anything about extending for 12 months if I cannot do this. I realise I should have checked all this before I signed out be warned! I did query this and was told that it is usually extended for another year but it what I have signed that matters.

Am going to check this out with my IP.

I think we have said this before when setting up an IVA much sure you are clear on this before signing anything.

Linda