We are in year 4 of our IVA and our IP has asked us to try and progress with the remortgage in our proposal. We have had our property valued today by an estate agent (£190,000) and have an outstanding mortgage of £152,000. Our current lenders will only lend 75% of the value so they have said this is a non-starter and obviously it is highly unlikely that anyone else will lend us any more - we would be pushing it with our salaries anyway. Our question is, what sort of documentation do we need to send to our IP to prove that we have tried and failed to get the remortgage? We have asked the estate agent to put their valuation in writing - is there anything else we need to do or documentation we need to obtain?
Many thanks for your help.
Hi Tracy and welcome to the forum. A letter of refusal would be the thing I'm guessing?? I'm not at this stage yet but will be next year so your post will help me too. Someone who knows will be along very soon I'm sure. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Remember to ask the estate agency - value for a "forced sale" this is offers a lower value - but priced for a quick sale - dont mention anything about your IVA to them !!! (they may refuse to come)
Previously some IVA companies have accepted refusal emails etc as documentation - but worth checking exactly what they need /how many refusals
In the light of the current situation I wonder why the IVA companies still ask people to do this, surely no one is going to get an increase mortgage with an IVA, as people with normal credit files are struggling. Sorry to thread butt, but doesn't it seem crazy! Good luck with whatever you need to do!
"It is never too late to be what you might have been"
Fiona
When i was asked to do this last year, I had to get my property valued and ask three different companies for a re-mortgage. I went through Crystal Clear Mortgages and they did all the leg work for me. They sent me letters for each of the three refusals and I forwarded them onto IP, who was happy.
Don't know why they bother asking for this, as in an IVA, there doesn't seem to be any chance of re-mortgaging.
Hope that helps
Last edited by Rach80 on Fri Aug 12, 2011 8:12 pm, edited 1 time in total.
I agree the equity clause is archaic and seems to contradict the whole ethos of an iva-why we should have to try and accumulate more debt when we have spent 5/6/7 years trying to sort out the mess we are already in is completely senseless-if we could remortgage the interest rates would be astronomical.
Also, why isnt age factored into the equity clause, in our case my husband will be 59 when the clause will be looked at, who the heck would even consider him for a remortgage????
Just give us the extra year and quit this farcical clause.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
My husband will be 66 and I will be 59 so there is no chance we would get one! As it is I will be 67 by the time the mortgage finishes and he will be 74 - even if they were to consider it the extra per month for the amount we have to release would be too high.
It was never in our original proposal, it was a modification and we never even thought that far ahead, just thought the extra year would be ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In our proposal it states that any re-mortgage will not run past our retirement date. and payments will not be any more than 50% of the current payment being made.
With regards to getting into more debt by remortgaging creditors would not care less, they want as much money as they can get, and not too bothered how they get it!
I think the clause is there to cover themselves just in case things do turn around really quickly, maybe in the next 4-5 years things might be different? At least if its always in there they wont forget to put it in as creditors do seem to forget things even like claiming their debts!!!!!!!
Baldy
There is no way that ours would have got past that - hubby reaches 65 this year and our mortgage will still have several years to run.
We still have to figure out how to carry on with his IVA once he hits state pension!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
