www.iva.co.uk

If I do an IVA of my own - husband not included.

House value currently 170K (apparently)
Mortgage outstanding 130K and am only paying interest so that wont change by the end of an IVA.
40K equity of which 20K is my husband's entitlement
The house is only in my name so my equity 20k.
Would I be expected to remortgage and for how much- I do not understand the 85% total under these circumstances.
The other question is how do you get a remortgage when your in an iva apart from changing mortgage providers and getting a lender with an undesirable rate.

I would suggest on current equity levels you would be expected to release approximetley £7k - £8k.

However creditors like to see a fourth year valuation and should your property increase in value then this could be a little more.

Creditors would ask you to release up a maximum of 85%LTV from your share of the equity.

Depending on your proposed payments into the IVA you could possible propose a six year IVA to compensate creditors for that equity providing it is fair compensation.

Should you be expected to re-mortgage it may not be through a high steet lender although the interest rates are not that much differnt and you can always change again later down the line once your credit rating begins to improve.

The difference in your new increased mortgage payment should not exceed more than 50% of your IVA payment.

Carl

Thanks I am finding this forum extremely useful and encouraging - there is light at the end of the tunnel

Be careful, creditors might consider that you own the house 100% and not on a joint basis given it is in your sole name. So the calculation might be £14,500.