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Posted: Thu Mar 27, 2008 7:56 pm
by rda
My husband and I own our house and have a modest mortgage (45% of valuation). Will we have to surrender our house to the mortgage company before we can enter into an IVA ?
Posted: Thu Mar 27, 2008 8:08 pm
by sblack
Welcome,
How much equity do you have in the house ?
Can you give some details on you situation.
Thanks.
Posted: Thu Mar 27, 2008 8:38 pm
by Lisa2009
If there is no arrears on your mortgage there should be no need to surrender your house.
You can still go into an IVA but you will probably be asked to release equity at the end of the arrangement to give a little more back to your creditors.
Posted: Thu Mar 27, 2008 8:57 pm
by MelanieGiles
The general ruling if you are going to be proposing a five year repayment based IVA would be for the creditors to require you to have the property revalued during the final year of the arrangement, and the raising of further monies by taking out a re-mortgage based upon 85% loan to value. In your circumstances, that might amount to a large sum of money being raised, but the new mortgage should not cost more than 50% of your current IVA payments so the new loan will be limited on that basis.
Could you post the current value of your property, and total you owe to your creditors?