Joint Mortgage And Single IVA

NeilJ01

Can someone tell me if my wife refuses to agree to any remortgage or funds being raised against our property, how can an IVA provider expect equity to be raised from this source ?

sourcrates

They won`t, the usual process, if you can`t, or don`t want to re-mortgage, is to add another 12 months of repayments to the arrangement instead.

It will all be covered in your IVA paperwork.

NeilJ01

Hi Sourcrates, thanks for the reply.
That's the thing and the argument I'm having with Jarvis (taken over from Grant Thornton / Aperture). My IVA was approved in June 2016 on agreed term of 7 years. The seventh year was extra payments to purchase the property equity as we made it clear that my wife, who is not included in the IVA and didn;t sign anything to do with it other than the RX1 forms, would not agree to a remortgage or any funds raised on the property we own. Jarvis have now passed my details to a specialist mortgage provider to investigate equity release because a clause was added into the IVA that stated the "equity would be dealt with in line with PCIVA guidelines if the equity is not realised in the first twelve months". There is not mention of how a remortgage or raising of other funds is to be dealt with other than this clause.
The seventh year is specifically mentioned in the IVA documents with the words "12 monthly contributions of £189 to purchase equity".
In essence, we have already agreed to an extra year of payments as my wife would not agree to a remortgage or raising of any other funds from the property. I suppose this could be seen as being in line with the PCIVA guidelines ?
If the creditors agreed to the extra twelve months payments how can we now be asked to look at equity release ?

sourcrates

My IVA ended in 2013, since then the IVA market has changed somewhat, there is more of a focus on equity release, re-mortgaging, and even loans to end an arrangement early, the purpose of course is to raise as much money as possible for the benefit of your creditors, and that`s the "modus operandi" the IP operates under.

I would stick to my guns and refuse any offer that was made to me, re-iterate you would prefer the 12 month extension, and just don`t settle for anything else, kick up enough fuss, they will agree to it.

NeilJ01

I'm just concerned about being accused of not complying with the agreed IVA. After 5 years it's bringing all the worry back from when the IVA was first sorrted. 

MrsChillers

Hi my husband and I are both in IVAs with Payplan. We are paying an extra year into both of ours as we have a mortgage and do not (well actually as we are under 55 we didn’t think we actually could release equity from the mortgage? - nor do we want to! Could someone clarify this please as panicking now! If we could have done this in the first place to clear our debts we wouldn’t be in our IVAs!)