hi ,,, im due to remortgage in the 4h year

[num1cabby]

hi ,,, im due to remortgage in the 4h year to get the equity for my creditors.. i wil be paying back my debt in full ,, is there any way i could put back the remortgage to maybe the 5th year as hopefully i would have the money to pay back at some stage to avoid the remortgage ? my iva is with money debt and credit ,, not sure if they are a flexible company ,,, many thanks for your time ... mark

[orange]

we are in the last 18mnths not sure will let us remortgage then,reackon will have to go on for another year.

[rayb]

Chances are as remortgaging is probably next to zero is to have an extra year added to your IVA

[kallis3]

Hi mum1cabby.

I would give MDC a ring to see what they say nearer the time (don't know how far into your IVA you are).

At the moment you would probably find it difficult to get a remortgage, so you may have to pay for an extra 12 months.

[kalla]

You can get a remortgage with some lenders now dealing with IVA people,and it not a complete NO NO! It's based on your circumstances.As time goes on it and when it is safe for lenders to start competiting for customers - it will get easier to Remortgage but at a [still]prohibitive interst rate for IVA people.Interest rates for 'subprime'loans are still high despite the overall falls.

So creditors will get their 4th year EQ release.
One of the issues I have seen increasingly on this forum are people glumly jarred by the prospects of having to remortgage in their 4th IVA yr and subsquently pay much longer for their Home loan to complete - as creditor takes the large % share of the EQ. Well,I can sympathesis and you could be paying 100% of your debt back compared with people with no property. But you have a house so you have to be prepared to collaterised the asset for debt payments. There are little 'write off' opportunities in an IVA to be had if you have a house.

I predict lender will not simply go for an extra year of IVA payment as a few months ago - as banks have to LEND!!! BY ORDER OF THE BRITISH GOVERNMENT!!! BY CONTRACT and punishable by fines and sanctions!! Sorry, thats aimed at the banks! The next worse cohorts after war criminals in my books

[kallis3]

Don't forget as well, that if your new payments are more than 50% of your IVA payments, then you won't be able to do it.

I am already resigned to having my IVA continue for a further 12 months. Due to our ages,no one will touch us for a remortgage.

[kallis3]

Unless the economy improves drastically over the next few years, then I am sure banks will come up with a reason for not remortgaging people in an IVA. They always do.

[Adam Davies]

Hi
The clause that relates to a remortgage costing no more than 50% of the IVA payments is for protocol compliant IVAs only, introduced in Feb 08.
Where do you hope to get the money from Num1cabby to pay into your IVA instead of a remortgage ?
Regards

[tobymoz]

I also have equity in my house but am hoping that in my 4th year we won't be able to remortgage as then I will be able to write off half of my current debts which are considerable.

I am just going through the IVA procedure now and waiting for the creditors meeting to be arranged so presume mine is protocol compliant? not quite sure what that means.

We will be 57 and 59 in our 4th year so we probably won't be able to get a remortgage.

[Welsh Boy]

tobymoz

Your ages of 57 and 59 would not stop you getting a mortgage/remortgage.

As long as you meet the lenders lending criteria then these ages would not be a problem.Tony

[kah]

My IVA says that if I have no equity in year 4 I make a one off payment of £150 - and thats that - I carry on until the end of year 5 of my IVA. Is this unusuaal? (I'm 60)

[northumbrian69]

What are the lenders lending criteria for debtors who 'are getting on a bit', I will be 62 when my 4th year equity release clause kicks in, would a lender realistically lend me money over a 20 year period, I would still be paying it back into my 80's should I be lucky enough to live that long.
I brought the 4th year equity release subject up when I had my initial interview before proposing my IVA, the lady who interviewed me told me that because of my age 'it would only be a paper exercise as no one would give me a mortgage at my age', is this information correct [?][?][?]

tobymoz

Your ages of 57 and 59 would not stop you getting a mortgage/remortgage.

As long as you meet the lenders lending criteria then these ages would not be a problem.Tony

[Welsh Boy]

northumbrian69

A lot would depend on your particular circumstances i.e. affordability etc. but your age would not stop you obtaining mortgage funding, this is based on today`s lending criteria, obviously this could well change at any given time but as long as you were capable of meeting the lenders lending criteria your age would not stop you obtaining mortgage funding. The age you would be at the mortgage end and your income to enable you to service the mortgage would be very important, let me give you an example.

If you were 62 at the time of the application and you met the lenders lending criteria which may state your mortgage should be paid by the age of lets say 80 then as long as the lending was acceptable to the lender they would consider lending to you. For someone to tell you that at your age 62 in the 4th year of your IVA you would not be able to obtain a mortgage is not correct, furthermore you should not be taking mortgage advice from anyone unless they are qualified to offer the advice. I know a bit about IVA`s but would never offer advice on them as I am not a qualified Insolvency Practitioner. Hope this helps. Tony

[kalla]

I didn't think age would be prohibitive to a re mortgage loan,as many can still work and beyond retirement age and will do so to fund pension annuities and extra incomes - and to be still paying a mortgage off at 70 is not ridiculous,and its happening.An joint annuity of for example could service a repayment quite easily.

As to whether there will be any equity in your property when the 4th year comes in???? The big unknown. But Banks will lend - they have to for the next five years to unfreeze the credit market.

[northumbrian69]

This 4th year equity release subject is a real 'minefield', I am really struggling with the rules that apply, and judging by all the posts that appear on the forum I'm not alone.
It would seem that if you want to hold on to your house the idea of being 'debt free after 60 months in an IVA' just does not apply, it's more like 'debt free after 20 years'.
I agree that if you get into a financial mess you have an obligation to repay your debts to the best of your ability, I am 2 years into an IVA and managing to keep my head above water but the financial constraints are quite difficult, I can put up with it for another 3 years but I can't even begin to imagine having to live like this for another 20 years, it's a nightmare.
I read a lot about protocol compliant IVA's which limit remortgage repayments to 50% of IVA payments, I haven't got a clue how this works and if I haven't got this type of IVA what rules apply to equity release mortgage payments for normal IVA's [?][?]
I think it would be a good idea to have a forum dedicated to the subject of equity release, I didn't fully appreciate what I was agreeing to when my IVA was approved and it would appear I'm not the only one, I would certainly like to learn more about it, then I can decide if it's worth struggling on or not.
What do other people think [?][?][?]