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Equity release question.
purpleparrotuk
Posts: 411 Forumite
in IVA & DRO
Hello. Hubby is in an IVA. We have reached month 54 so have got the equity figures they require.
Original debt amount was 42k
Iva was for £25k approx dividend of 40p
We have paid £25k already, £5k of this is the supervisor fees etc. and if we concluded at month 60 will have paid back the £25k plus fees.
So here's my question. The equity share hubby has been asked to release is £32,500. If we did this and the iva took the whole lot we will have paid £57k plus £5k fees. So total £62k. I thought the equity release was only to make up the total original debt. This is way over plus we will have to pay an additional mortgage cost for the rest of our mortgage. Approx 10 more years. Surely this can't be right when we could just have the 12 months extension and pay the extra £500 per month instead? We would have been better off not doing the iva in the first place.
Original debt amount was 42k
Iva was for £25k approx dividend of 40p
We have paid £25k already, £5k of this is the supervisor fees etc. and if we concluded at month 60 will have paid back the £25k plus fees.
So here's my question. The equity share hubby has been asked to release is £32,500. If we did this and the iva took the whole lot we will have paid £57k plus £5k fees. So total £62k. I thought the equity release was only to make up the total original debt. This is way over plus we will have to pay an additional mortgage cost for the rest of our mortgage. Approx 10 more years. Surely this can't be right when we could just have the 12 months extension and pay the extra £500 per month instead? We would have been better off not doing the iva in the first place.
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