Only just occurred to me and a bit miffed

chirpychick

Our IVA is 5 years but we have to remortgage and release equity if we can which is fine.
But 3 years in, the end is in sight and It occurrs to me, nobody is going to remortgage us are they? Which means we have no option but to stay in for an extra year.

None of this bothers me so much - its our debt, its only right we pay back as much as possible.

But i'm a bit annoyed because we have to have 2 rejection letters to prove we cant remortgage, so then they stay on file for 7 years so nobody is going to remortgage us for a very very long time, all the while we are paying a huge mortgage bill, wont ever be able to move or anything. Im more annoyed at myself for not realising this 3 years ago but also wanted to check - is there any way at all to remortgage in an IVA?

Anondebtadvisor

It is very unlikely you will obtain a re mortgage when in an IVA and you will probably have to make 12 additional payments in lieu of any equity.

Any searches that are carried out will leave a "footprint" on your credit file, this will show the name of the company, when the search was done and for what purpose, these footprints only remain on your credit file for 12 months - I am a bit confused where you get 7 years from?

chirpychick

Oh ok, I thought when you applied for a mortgage it stayed on your record for a lot longer, thats not so bad then. Thank you.

UpToMyNeckInIt

Firstly, well done on reaching the half-way point in your IVA.

However, unless I am missing anything obvious, you seem to be jumping to unjustifiable conclusions, and unduly worrying.

This ‘attempted remortgage’ clause is par for the course that, as IVA homeowners, we all signed up to: Simply get your ‘rejections’ and your IVA concludes in year 6 – straightforward enough for me.

Immediately after that, I understand that your credit file is restored, with the record of your IVA deleted, and you are free to start shopping around for remortgages.

Where have you got this ‘they [re-mortgage rejections] stay on file for 7 years so nobody is going to remortgage us for a very very long time’ opinion from? (fair enough, the 2 companies you approach may retain this information, regardless of your credit file).

I am aware of numerous former IVA customers (granted, often with the assistance of a ‘whole of market broker’ – which is the best way to get the best comparison of the whole mortgage market anyway IMO), being able to successfully remortgage, at normal high-street rates, within a few Months of receiving their completion paperwork.

My suggestion is that you take each step at a time, and worry about moving etc. in 3 Years or so: The housing market is picking up. Whilst I understand the thought that you may be ‘trapped’ where you are, mortgage lenders are already starting to relax criteria again, so the situation may be better than you think by then.

Best of luck for the rest of your IVA.