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Posted: Wed Jan 07, 2015 5:02 pm
by Dan.40
Hi, my IVA is due to finish May this year (2015). I currently have a mortgage but am looking to move to a new house as soon as possible.
Is it part of normal IVA conditions that if I am unable to free up any of my property equity to my IVA provider, that they can continue to charge me the IVA payment for another 12 months?
If that is correct would I be better to wait until May 2016 to apply for a new mortgage?
Many thanks in advance for any help
Posted: Wed Jan 07, 2015 5:06 pm
by Foggy
Hi. Assuming you have the usual clauses regarding equity, if unable to release the money, yes, a 12 month extension is applied.
You should be looking at valuations and redemption statements around now ( month 54).
You will have no luck with a new mortgage until the IVA is off your credit files, so would have to wait until 2016 even if your IVA finished now.
Posted: Wed Jan 07, 2015 5:55 pm
by luluj
You could have a chat with Ryan or Shaun the mortgage experts on the forum ...they would be able to give some guidance as to when is the best time to move once your iva has finished.
Posted: Wed Jan 07, 2015 6:24 pm
by Ryan
Hi,
Foggy is right on this, but be careful, as some IP companies are telling people they can get a secured loan to pay up the IVA.
I can help you and provide a letter to confirm you are not eligible for a mortgage at this time if you want to get in touch, my details are below.
Posted: Wed Jan 07, 2015 7:54 pm
by Dan.40
Thanks all for the help and advice - Ryan I will definitely contact you further
Kind regards
Dan
Posted: Thu Jan 08, 2015 9:28 am
by Michael Peoples
An advantage to a secured loan is that is can close your IVA down much earlier than having to wait six years. If you are looking to move house it may be in your interest to get the IVA shut down as quickly as possible to minimise any delays after the IVA is completed.
I am not a financial adviser but I do know that many mortgage companies want a period of time between closure of the IVA and any new mortgage so if you extend the IVA this could push back any move for another while.
It is definitely worth taking advice from financial advisers specialised in this field.
Posted: Thu Jan 08, 2015 5:31 pm
by Shaun Vickery
If your IVA is extended by a further 12 months in lieu of being able to release equity then it's highly unlikely that you would be able to secure a mortgage before then I'm afraid. Many people do look to settle the IVA early and a secured loan is one of the options open to you in order to achieve this. This might bring forward the date of being able to obtain a new mortgage but it will depend on your individual circumstances.