www.iva.co.uk

Part of my IVA agreement is that i am supposed to re-mortgage in yr4 of a 5 year IVA agreement. Yr4 is next year.
My current mortgage fixed period runs out this year so i would like to clear my IVA balance and re-mortage at the same time.
(IVA balance approx £8500).
Unfortunately there does not seem to be any mortgage deals around and vitually none for anyone with an IVA.
Any ideas, what i should do??

Hey kevin, welcome to the forum, I'm hopeless with mortgages so please wait for an expert to advise you. Viki X

Remortgaging to settle debts is off the radar for the Banks.Until last Autumn the Banks can aways rely on the relentless rise in peoperty prices and say YES to remortgage - now with the downwould spiral in prices of 12% since then unfazed - Banks or Brokers aren't interested in the business. The subprime brokers that used to post here have all been 'crystallised' till whenever???

Well this mortgage broker remains uncrystallized so far! Admittedly we have had to invest a lot of time in reshaping our business in line with the new environment so I haven't spent as much time on the site as I would have liked.

There are mortgage deals available for those in IVA's. The rates and terms are less advantageous to borrowers than some months ago but where equity release is required an investigation by a broker would still be worthwhile.

I did some fairly intensive analysis last Friday and fairly quickly found five lenders offering products. As things stand I am unaware of any IVA mortgage product offering a loan to value in excess of 80%. There is one mortgage available at a significantly lower rate than the others (with a maximum of 75% ltv) but with some fairly restrictive criteria mentioned in a previous post today.

The situation is tough for borrowers and lenders but the market remains open.

does this not work in favor of the person in the IVA in theory. i thought most proposals now said that if you could not obtain the mortgage on the property in the 4th year then the IVA finishes at end of 5 year period.??

Very much depends on the wording of your IVA....

Some people will win because they cannot raise capital, or the capital that they can raise is less than expected.

Others, especially in newer IVA's, may find that their IVA is extended for a period (perhaps a year) in lieu of not remortgaging to release a capital sum.

Our IVA's say that if we cannot remortgage we must continue for another twelve months.

As my husband will be 66 by then, and I will be 59 and hopefully coming up to retirement, I can't see us getting a remortgage so I would assume we would just continue to pay.

Glad to see that you are not 'crystallized' Andrew ... and are managing to keep the flag flying! [:)]

Debbie

I am worried about this matter too, even though our fixed rate mortgage isnt due to end until Jan 09. (I know that time will come around quicker than lightening!

We are currently fixed into a 5.95% rate which we took out with GMAC too, so interesting that they sold off their mortgage business last year isnt it?? They could possible forsee huge problems!!

We are now with Mortgage Express who are part of B&B, so not doing so well at the moment.

Pre IVA i called them to ask what we would need to provided in order to get another fixed rate/discount rate when this one expires. They told me several times - so long as we were up to date with no arrears that they would offer us their current deals at that time. They said they dont do credit checks etc for existing customers.

HOWEVER...

I never once mentioned to them that we would be entereing an IVA, and thought that they wouldnt know unless they did the 'credit score' stuff, BUT... I later found out on the day the IVA was accepted that the IP firm wrote to them. BOO-HOO.

SO...
I dont know what the score is now, I am taking a guess to think we will have to go onto the standard variable rate which is 7.09% (£190 extra a month!!!!) at the moment, and could go up further according to the telegraph today.

I feel like i've just stopped worrying about the unsecure debt we had thanks to the IVA, and now the biggest borrowing most of us ever make could take us under if things continue to escalate.

I cant begin to estimate how many millions of other people are struggling due to the housing market and the mortgage rate, Where is it all going to end??

In a way I think, never mind 'no mortgage deals', lets at least get the Bank of englang base rate coming down so people can afford to pay on a variable rate!

Kind Regards

Hi
The market bat the moment will help those in an IVA as they may well not be able to remortgage.For many this will mean that the IVA will just conclude at the end of year five and for others they will just have to carry on with their IVA for another twelve months
Regards

Flowerpot:
We are with mortgage express too so I'm glad I read your posting as our fixed rate ends in Dec 08 and we are on 5.71%. You've answered some qusetions for me so thank you. We have just sent our paperwork off to our IP (first lot of paperwork) so maybe I am just in time to get a good(ish) deal. Did they say how much time before the deal ends you should leave? i.e. could I get it sorted tomorrow or would I have to wait until Dec?
Thanks in advance
Karen

The subprime market for Home loan is unfortunatly 95% destroyed by the Credit Crunch and of course there will [still] be loans and some decent rates avaliable to IVA people. My beef on the whole sordid affair is that those loans(US/EURO underwritten) all ride on the back of the dreaded Structured Vehicle investments(N'Rock style)- your mortgage debts become sold as Bonds to investors who then recouperate the Banks for lending you the money,cycle repeats itself like 'cancer' and that played havoc with the entire fisca market when defaults hit the roof

Interestingly 0.65% of all mortgage Households in the UK are in arrears.11% in the US.

Such 'fanancial technology' to enable loans to be given to everyone and media packaged as some kind of Univeral sufferage of a 'given right' is what we can do without.The US started this and is paying for it - we are all paying for it.

Lets go back to old fashion prudent lending and borrowing based on affordabilty and sustainablility