re-mrotgage

memberme

Hi. If you strat a 5 year iva and have to look to re-mortgage within year 4:-
does that mean:-
1) that if you can get a re-mortgage they reduce your iva paymnet to match the increased payment from the new re-mortgage
2). they expect you to time it to start at the end of the iva so you can have a possible huge re-mortgage additional payment negating the end of the iva payments.
3).if you can get one (even if at the end of year 4 as with many)is it taken as the final payment and the iva stops

any agvice welcome. i'm in year 2 and wondfer what most other folk have experienced

bernard828

The standard wording is that you use up to half the monthly payment you make to the IVA to increase your mortgage & secured loan costs by to get the remortgage. So if your IVA payments are £200, your IVA payments might reduce by up to £100 to accomodate the increased mortgage payment.

I believe if this process reduces the monthly dividend to creditors to below £50 then the IVA might be finished early if there's only a few months to go.

Whatever you do has to be affordable and reasonable.