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iva or can we remortgage

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We have paperwork to send away for an IVA which is being set up for us,but before we do wondered if we could remortgage instead we owe 17,000 and are 1,000 in arrears with our mortgage which we have an agreement to pay extra each month.partner takes home 350 per week and myself 265 per month basic however this is generally 487 per month in overtime.Iknow with the iva they can take 50% of the overtime from me.Surely if we could get a remortgage of an extra 17,000 it would only effect the monthly payments of £60.Our mortgage at the moment stands at 59,000 houses are selling around the 87,000 around us for the same style house. Help any advice would be appreiciated.Partner dosent seem to concerned we as for me i am a nervous wreck.:confused:

Comments

  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't know much about IVA's but I doubt that you could remortgage whilst you still have outstanding arrears on your current mortatge. What is your credit rating like?
    :p
  • lana2001
    lana2001 Posts: 5 Forumite
    no its no good definately going through with the IVA sent everything off today its 85% my partners debt
  • MIVAA
    MIVAA Posts: 124 Forumite
    Hi lana2001,

    Sorry to be the bearer of bad news, but I would think your IVA application would be rejected.

    You say your property has a value of £87,000, and you owe £59,000 to the mortgage company, which leaves equity of £28,000.

    As I see it, and based on the information you have provided so far, if you only owe £17,000, yet you have equity of £28,000 you are not insolvent, and therefore an IVA is inappropriate.

    Who is it that has suggested you would be successful if you applied for an IVA?

    Have they suggested that an IVA is pretty much guaranteed, and are they suggesting you make a payment to them before the IVA has been agreed by your creditors.

    If so, be very wary and get a second opinion from a local insolvency practitioner, for it maybe they are suggesting an IVA just so as they can receive a monthly payment from you as a fee or reward, only to later tell you the IVA is not going to work.

    You could also try contacting CCCS or Payplan. They would offer you a second and third opinion for free.

    Better to be safe than sorry, but good luck either way.

    MIVAA
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