How to remortgage in year 4

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We have had an IVA with Grant Thornton (who were recommended by the CCCS) and have had a letter reminding us that during year 4 we can wind the IVA up if we remortgage to release a lump sum. We pay £541pcm and they are looking for £19000. There are two problems though.

First, does anyone know of a mortgage lender who will deal with people in our situation. Up to now everyone we have tried cuts us cold as soon as we mention the IVA.

Second. We have had the house valued and it is worth less than it was when the IVA started thanks to the credit crunch AND most mortgage lenders are offering loan to value percentages far lower than we need to achieve the figure GT are looking for. Any ideas what will happen in this situation.

Any help very much appreciated.

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  • doelani
    doelani Posts: 2,576 Forumite
    First Anniversary Combo Breaker
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    tped240 wrote: »
    We have had an IVA with Grant Thornton (who were recommended by the CCCS) and have had a letter reminding us that during year 4 we can wind the IVA up if we remortgage to release a lump sum. We pay £541pcm and they are looking for £19000. There are two problems though.

    First, does anyone know of a mortgage lender who will deal with people in our situation. Up to now everyone we have tried cuts us cold as soon as we mention the IVA.

    Second. We have had the house valued and it is worth less than it was when the IVA started thanks to the credit crunch AND most mortgage lenders are offering loan to value percentages far lower than we need to achieve the figure GT are looking for. Any ideas what will happen in this situation.

    Any help very much appreciated.

    Not sure about your second question about the value but speak to GT and see if they can reccomend a broker who may be able to source a mortgage for you.

    We had our IVA with GT when we decided to do a F&F after 3 years because of a change in circumstances. They where abelt o give us the name of a broker who had arrnaged a few mortgages for their customers. May be worth a call and asking them
    TOTAL 44 weeks lose. 6st 9.5lb :T
  • headstuckinsand
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    You need to check your IVA agreement for the exact details but in a lot of cases if you are unable to release equity due to:
    - remortgage would put your payments up to an amount more than your IVA or;
    - mortgage equity is less than £5000
    then you would not be required to release any equity and the IVA would come to a close at the end of the agreed term.
    Unsecured Debt at start of IVA in 2009 = £51,734 :(
    Debt free as of March 2015!!!!:D:j:j:j:j
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