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can you remortgage whilst on a iva

Hi Sarah

It is possible to remortgage whilst in an IVA - are you already in the IVA or considering entering one?

There are a number of things which you will need to consider if planning to remortgage, such as whether the new monthly mortgage payments would affect your ability to make monthly contributions into the IVA, if you wouldn't be able to continue making the monthly payments then you will need to use the remortgage funds to pay off the IVA in one lump sum. You should speak to your IP to discuss whether this is viable.

Another consideration is the rate you can obtain on a remortgage whilst in an IVA, there are lenders who will provide funding to people in IVAs but the rates are unlikely to be as competitive to those who are not in IVAs, the best thing to do is shop around to see which is the best deal.

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

Hi Sarah,

Many of our IVA's that are in place have the clause in them that they must arrange a remortgage in year 4 of the arrangement and have had no come backs to date where the client is unable to do so.

I hope this helps.

Kind Regards

Nicola



Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

Sarah

I would like to re-iterate the comments made by Nicola. It is certainly possible to re-mortgage while you are in an IVA. However, you must NOT do anything without the full knowledge and agreement of your IP.

If you did remortgage with the purpose of actually releasing funds but then did not give these funds to your IP, you could wind up in big trouble.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

Hi
A remortgage will need the approval of your IP and a reference from them.Also an interest in your property will almost certainly have been made to the land registery making it impossible to remortgage without your IP knowing[ making James scenario unlikely.]
Why do you want to remortgage ?
Regards

In my experience, I am rarely asked to place an interest at H M Land Registry - I would say in less than 10% of cases, but I cannot speak for other IP practices.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thats interesting and suprising !!! surely if part of your IVA agreement is to remortgage in the final years creditors would request a safe guard to ensure that the equity is not used before hand ???

You would think so, wouldn't you. Maybe some creditors are just more trusting!!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hello

In most recent cases I've had where the creditors have requested a remortgage or other modification to deal with the property there is also a requirement for a restriction to be placed on the property at the Land Registry by the Supervisor.





AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com