Questions about Individual Voluntary Arrangements and Insolvency.

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Byiva2003
#148814 I'm starting to panic here.

I'm in the 4th year of my IVA and I have to remortgage to release £15000 of equity in my property. It doesn't sound a lot but that is because it's a shared ownership house and I only have a mortgage on 25%.

The problem I'm finding is that none of the lenders I've approached are interested because it's such a small amount and it's a shared ownership.

What will happen if I can't remortgage? I've tried to contact my IP but I never seem to be able to get hold anyone who can help.

I feel sick. :cry:
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Byrebornat40
#148824 Firstly, don't panic :) .

Read your original chairmans report & it should state that if you are unable to remortgage in the 4th year, you will carry on making payments into the IVA for a 6th & final year. At the end of this period, the IVA will be completed. Some IVA's require a meeting of creditors to sanction the 6th year but from what I have seen, this is a formality.


Have you tried the Chelsea BS?
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Bysubmariner
#148853 Echoing the "don't panic" advice above (not least, for the reasons stated by reborn) you could also try Pink Home Loans. They were very helpful to me in non-standard circumstances (fully conversant with IVA requirements) and they don't charge exorbitant fees or interest rates (but go for any of the High Street ones in preference if you can :) )
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Bysarah1975uk
#148905 Personally i would much rather pay into the iva for the 6 years rather than remortgaging sercuring more debt on the house and potentially having to pay for the remortgage for term of the mortgage.

Although tied into the iva for longer at least you know you have finished with debts in the 6th year without having to remortgage. Hope goes well for you xx
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Bysubmariner
#148918
sarah1975uk wrote:Personally i would much rather pay into the iva for the 6 years rather than remortgaging sercuring more debt on the house and potentially having to pay for the remortgage for term of the mortgage.



Dead right, but if you have a lot of equity it's difficult to get an IP to go that way - or at least it was when I did mine. At least remortgaging does give a good route to an early F&F, which in my case dropped the original 47% to 28% after just one year, just from the act of remortgaging (ie the mortgage payments cancelled out the monthly payments so a variation meeting agreed to end the IVA).

Yes it's a still an unwanted (and a little frightening!) remortgage, but I ended up with a significantly smaller overall sum (10s of £K!) and my mortgage doesn't have that long to run.
Bykizzy
#149109 I would have loved to have just paid an extra 12 months into my IVA but my IP stated that because we already had some equity and sufficient earning power to remortgage in year 4 then the creditors would not agree to it. In fairness the idea of an IVA is to pay back as much as you possibly can to your creditors and if releasing equity enables you to do that then so be it.
I am hoping to remortgage earlier than year 4 to offer a F & F and have been looking at Chelsea Building Society - they seem to offer quite good rates for adverse credit mortgages at the moment but I am sure there are quite a few other lenders out there who can help with remortgages.

Best of luck K
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ByRazzTazz
#149404 Well... if you REALLY can't remortgage, you might sell your home and move to a smaller property and/or a lower-cost area, but consider the risk of negative equity if property ...
But don't panic, and best of luck!
Byiva2003
#160823 Hi everyone,
I've looked at the chairmans report and it states that during the 4th year I have to remortgage to release £15000 equity to be paid into my IVA or my IVA can be extended for a 6th year to pay an equivalent amount into it over the year. Unfortunately there's no way I can afford to pay them £15000 in a year, I would have to pay them more than I earn each month.

Chelsea couldn't help me either as their minimum mortgage is £40000, and I only own 25% of my property. I will give Pink Loans a try & see if they can help.
Selling my house and downsizing isn't an option either, I live in a 2 bed terrace with my young son, so there's not that much to downsize. Also I couldn't afford anything on my salary and with the credit rating I've got.

I can't face coming this far only to be made bankrupt in the final year of my IVA simply due to the fact that I can't remortgage. :cry:
If I don't get anywhere with Pink Loans I'll contact my IP to see what they have to say. Does anyone know if it's possible to re-arrange an IVA to just pay a higher monthly amount and not remortgage?

If anyone else has any more advice I'd be really grateful of your help as I'm running out of time.

Thanks again.
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Byandypip
#160849 I'm currently talking to Who's Lending, who are partners of PayPlan, about remortgaging - I'm 2 years into my IVA. So far, I've been really impressed with them and their knowledge of the market - they don't charge anything for their services so give them a call, they also have a website too.
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Bysarah1975uk
#160851
andypip wrote:I'm currently talking to Who's Lending, who are partners of PayPlan, about remortgaging - I'm 2 years into my IVA. So far, I've been really impressed with them and their knowledge of the market - they don't charge anything for their services so give them a call, they also have a website too.


Thank you for that i have saved their website to my favourites.
Byiva2003
#164017 Well, I've been in touch with Who's Lending who tried everywhere to find me a remortgage, but no luck on 2 accounts. Firstly because it's a shared ownership and secondly because it's only for £15000. They were really helpful and the advisor I've been dealing with has offered to speak to my IP to confirm all the problems I am having in remortgaging and that it is highly unlikely I will be able to.

When they couldn't help I tried Pink Home Loans. They actually came back to me really quickly and said that the remortgage should have NEVER been a condition of my IVA, as you CANNOT remortgage a shared ownership property for debt consolidation, only for buying further shares in a property.
So I will have to go back to Debt Matters with all this information and take it from there.

Has anyone else ever come across this situation? And does anyone know if what Pink are telling me is actually true? If it is it's ridiculous that remortgaging was a condition of my IVA, but what do I do about it? :?
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