IVA and equity release

Jo-Anneb64

Hello,

Could anyone tell me how the equity clause will effect us, we don't have more than 15% equity in our home, however do have more than £5k, how would this effect us and how do iva companies work out what we need to pay?
Thanks

mwarby

depends on the exact wording in your IVA

From the sounds of your expected to release equity if you have more than 15% but they aren't interested in equity less than £5000. If your figures are correct you won't have to release equity

The 15% is due to the fact that getting a loan above 85% loan to value is very difficult, especially during IVA.

Jo-Anneb64

Thank you, my mortgage is £126200 and it's worth around £140k.

I really hope we don't as ready for the iva to be over now.

Vikipollard

Don't be surprised if you have to continue your payments for an additional 12 months in lieu of the equity.

(Sorry to be a party pooper!)

Jo-Anneb64

That's what I really didn't want to hear :-( but i thought that might be the case, I suppose it's out of my hands. Thanks for your response