Equity Release queries

sillysausage1977

We are at the point where we are about to try and approach mortgage lenders for a remortgage and I just have a couple of queries regarding this.


1. On the proposal we signed it states that the incremental cost of the remortgage, including of any new repayment vehicle, will not exceed 50% of the monthly contribution at the review date.

At present we pay £462 to our mortgage and £231 per month into the IVA does this mean that the remortgage amount cannot total more than than £577 per month?

2. Our propsal also says: The remortgage term does not extend beyond the later of the state retirement age or the exsiting mortgage term.

Does this mean it goes with which ever date is longest for example our mortgage ends in 8 years time, my husband who's IVA it is retires in 15 years time.

3. Lastly our proposal states: If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA and my supervisor will have the discretion to consider accepting one of the following alternative proposals: A third party sum equivalent to 85% of my interest in the property.

Does this mean he will have to apply for a loan?

Thanks for taking the time to read.


1.

DorisTrousers

sillysausage1977 wrote: »

We are at the point where we are about to try and approach mortgage lenders for a remortgage and I just have a couple of queries regarding this.


1. On the proposal we signed it states that the incremental cost of the remortgage, including of any new repayment vehicle, will not exceed 50% of the monthly contribution at the review date.

At present we pay £462 to our mortgage and £231 per month into the IVA does this mean that the remortgage amount cannot total more than than £577 per month?

2. Our propsal also says: The remortgage term does not extend beyond the later of the state retirement age or the exsiting mortgage term.

Does this mean it goes with which ever date is longest for example our mortgage ends in 8 years time, my husband who's IVA it is retires in 15 years time.

3. Lastly our proposal states: If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA and my supervisor will have the discretion to consider accepting one of the following alternative proposals: A third party sum equivalent to 85% of my interest in the property.

Does this mean he will have to apply for a loan?

Thanks for taking the time to read.


1.

Seems right, half of £231 plus £462

15 years is correct

A 3rd party can provide funds in lieu of equity, but the most common scenario is that the IVA extends by a further 12 months in lieu of equity.

National_Debtline

sillysausage1977 wrote: »

3. Lastly our proposal states: If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA and my supervisor will have the discretion to consider accepting one of the following alternative proposals: A third party sum equivalent to 85% of my interest in the property.

Hi sillysausage


The above highlighting is mine - have you missed out the rest of this excerpt? As DorisTrousers suggests, there is normally the alternative option of an extra year of instalment payments if the equity cannot be released or an equivalent sum offered by a third party.


Dennis
@natdebtline

sillysausage1977

National_Debtline wrote: »

Hi sillysausage


The above highlighting is mine - have you missed out the rest of this excerpt? As DorisTrousers suggests, there is normally the alternative option of an extra year of instalment payments if the equity cannot be released or an equivalent sum offered by a third party.


Dennis
@natdebtline

Yes I have missed the bit out about extending it for another year I was just wondering if they will make us take out a loan instead.

DorisTrousers

The only way that the IVA can be extended in the first place is if you cannot obtain further credit, so whilst he will have to go through the process of applying, the overwhelming odds are that he will have to do the extra 12 months instead.