Equity release advice

clareeg100

I am reposting this I hope on the right board, I have had equity release remortgage advice and told that it is affordable but not yet got it agreed in principle. This is because I have paid 92.5% of original debt and am waiting for calculations from Pay plan to tell me what the final 100% figure is, they obviously dont look at account balances before sending out letters telling you how much equity release is required, which n this case is £9.5K which is a whole heap more than I owe them from my crude calculations!

My question is though, do I need to disclose how much equity release I will be pursuing? I ask this as when seeking the mortgage advice I was advised due to amalgamate a secured loan (have 7 years left in it and 10 years on mortgage and interest rates are better in the mortgage which is fixed rate initially then could seek alternative) When speaking to pay plan and pointing out their error in asking for such high equity release compared to potential final balance I asked (stupidly) if I could release a higher amount of equity to what they had suggested. They said that they would have to ask IP. Why is this as once the equity release is completed and they get the final 100% I am then discharged from the IVA and then I am left with paying the mortgage, what is the problem?

Sorry if I sound dim but I have worked really hard and obliged with the terms of the IVA and paid some sizeable chunks into it from actively seeking PPI payments. My circumstances have greatly changed also over the 5 year period with regards to income and outgoings. I cant afford to move house but boy could my house do with some repairs and replacing a rather decrepit 22 year old boiler....

mwarby

Worth bearing in mind the 100% figure is not just the original debt, but the debt plus IVA fees and possibly (not very common)statutory interest.

The only problem I can see with releasing a larger amount, is that the IP probably has a duty to ensure the remortgage is affordable (at least the portion for the IVA). Basically they can't ask you to take on an unaffordable mortgage to release equity, I'd imagine most IPs also don't want to see you leaving the IVA with debt problems

Lincsdebt

I had the same problem last year. Had paid off all the original IVA, but they told me I should now release £33k. That would've meant that they had received £17k over the original debt. This was Payplan too.


I couldn't get the remortgage so am paying them for another 12 months, six of which are left. But it certainly didn't seem fair.