www.iva.co.uk

Hi There
A question about the wording of a clause in the "equity release" minefield...

"The IVA remortgage term will not extend beyond the latter of the debtor’s state retirement age or the existing mortgage term"

Does this basically mean that I could be asked to extend my mortgage term to my 65th birthday in order to get an IVA mortgage, as this is greater than the time I have left on my current mortgage?

Is it, therefore, possible that I could end up getting into more secured debt to complete my IVA?

Thanks.

You are correct. However remortgages themselves are almost impossible to get at this time but that may change.

How long have you got left WB?

You will probably find that your IVA will be extended for a further year in lieu of equity (if you have over £5k interest)

Hi
I've just started year 4 of 5 of my IVA.
I have a joint mortgage with my wife and we only have just over 9 years left on our mortgage so the equity is quite high (£42k in total).
I'm paying £139pm at the moment plus I have paid in a substantial amount in O/T over the last 12 months.
When the IVA started the illustration given stated payment to creditors estimated at c.£15k during the course of the IVA.
As the equity will increase over the years I was also wondering if offering an F&F of the total first quoted (minus payments made) would be a good idea to remove the potential mortgage minefield? My parents have talked about the possibility of an F&F offer if they could cover it.
Thanks.

You would need to offer a minimum of 24 months or consider a secured loan to get you out of the IVA (and you may be pushed down that route anyway).

On basis you couldn't remortgage then the amount of payments left covering a 12 month extension would be c£3.3k - this is what you would base your offer on, not what originally estimated to creditors.