www.iva.co.uk

hi all.

I am currently in an IVA for which I have been paying into for 3 years at the following rate - 300 year 1, 350 year 2, 400 year 3, 450 year 4 and 500 year 5.

I am little worried that the year 4 clause my wipe out any equity I have in my property and would appreciate if anybody could help me with the math as its all a bit complicated. I have read a number of post regarding this subject but I am still a bit lost.

Details
71500 remaining mortgage now, which will be the same when the year 4 clause kicks in due to the fact i am paying interest only on the mrotgage;
i have a knightmare 13800 secured loan and i have caluclated that 20k will be outstanding at the end of year 4 to pay. Or 13000 will be the settlement at that time also.

if my house was 125k at the end of year 4 what would the equity release be.?/?

any help would be appreciated

thankyou.

k

Hi
You should be able to borrow 85% loan to value,so if your house was worth 125k you could borrow about 106k.Your outstanding mortgage ans secured loans would be approx 91.5k so equity would be 14.5k.Normally you are required to release 85% of this so that would be about 12k.
Hope this helps
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

thank you that is very helpful! i now know where i stand