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IVA equity release soon

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Hi wondering if someone can answer a question regarding equity release?

In my IVA paperwork it states - "The remortgage term does not extend beyond the later of the debtor’s State retirement age or the existing mortgage term."

I am 44 and have 7 years remaining on my mortgage but have 23 years till I retire:(

Does this mean when applying for a remortgage I would search for a 23 year mortgage or a 7 year one ?

I have read through the forum and found conflicting information and would like to know which way round it is .
Thanks

Comments

  • z1a
    z1a Posts: 2,522 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    23 years. *******
  • sourcrates
    sourcrates Posts: 31,557 Ambassador
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    It's quite likley you won't be able to remortgage with an IVA registered on your credit file.

    In which case you usually have to pay for an extra year into your arrangement.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • That's what I hope the outcome will be .
    I can't change my energy provider due to a credit check so I doubt/hope that I could get a remortgage !
    Thanks for your help
  • It is the 7 years, as it is whichever is the shorter, but as pointed out above it is very unlikely. Do not forget also that, if it is possible, the repayment cannot be anything more than 50% of the IVA payment at the time, which should help further in your quest not to get one in the first place.
  • Thanks Doristrousers I hoped it was just 7 years as the repayment I was quoted online made the monthly payment nearly twice as much as I am paying now !
    You can see why I'm confused though as Z1a says its 24 years and on payplans website ( who I'm with) state "That any new borrowing you take out to release the equity shouldn’t extend beyond the end of your existing mortgage or your state retirement age – whichever is LATER "
    Like you say though I hope its insignificant and I can't remortgage !
    Thanks all
  • Payplan are wrong in my opinion, unless it was specifically written so in your own proposal, which clearly it wasn't as you would not have asked the question in the first place if it were.

    Remind them of the 50% of IVA payment rule as well.

    As an example, if your IVA payment is currently £200, then the maximum repayment on any new arrangement is capped at £100. If that means that your outgoings increase then your IVA payment goes down by the equivalent amount to balance the books, and then finishes at 5 years. It is still limited to the 7 years though, not the state retirement.

    Kick up a stink if they try and argue otherwise.
  • Mine is just a standard 2012 iva protocol so I read it to be 7 years too but have read conflicting posts online so just wanted to clarify. My mortgage is £820 a month and like I said to get a remortgage to include equity release would jump the payments to £1400 approx which o see as well above the 50% rule . fingers crossed for the extra years payments!
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