Iva equity release.
Fozzbozzie
Posts: 1 Newbie
in IVA & DRO
Any help or advice much appreciated.
Started iva in 2013 with debt free direct richard savage was our ip. Statement affairs says house valued 102k mortgage left 102968.
In last year now but during the time passed from dfd to aperture and ip is someone else. Cannot find orginal ip details on any sites to ask questions.
Any how before we took iva we rang dfd re equity and how calcualted. Was told we get valuation done and it its 85% of value minus existing mortgage. Over 5 left se remortgage under 5k we dont need to do anything as no equity.
Paid 63 months into iva of 60 and rang aperture to see whats happenning. Told they were passing our details to select partnership who would deal with equity clause.
Select git in touch and said house value was 127k and there was around 32k in equity and offered us a loan second charge mortgage.
Wasnt happy with valuation or being offered a loan to become debt free so got my own paid valuation done.
It came ib at 103k which select said they woukd accept but still saying 11k in equity. But cannot be forced a secured loan as not in our proposal.
My questin is the amount of equity as was told how it would be worked out. 103k at 85% is £87550. Minus oustanding mortgage is less tge 5k.
Proposal say if valuation shows that 85% of interest in property after deucting loan or existing mortgage is less than 5k then no more need to remortgage.
It also states amount of money introduced into iva at end will be remortgage less existing mortgage and any costs so 4550k. Again less than 5k.
By this i should be looking at the deminus clause i believe. But have heard that aperture interpretate the clause tgere own way
Have sent an email and letters to aperture and current ip to address my issues.
But what else can i do ifi need to.
Started iva in 2013 with debt free direct richard savage was our ip. Statement affairs says house valued 102k mortgage left 102968.
In last year now but during the time passed from dfd to aperture and ip is someone else. Cannot find orginal ip details on any sites to ask questions.
Any how before we took iva we rang dfd re equity and how calcualted. Was told we get valuation done and it its 85% of value minus existing mortgage. Over 5 left se remortgage under 5k we dont need to do anything as no equity.
Paid 63 months into iva of 60 and rang aperture to see whats happenning. Told they were passing our details to select partnership who would deal with equity clause.
Select git in touch and said house value was 127k and there was around 32k in equity and offered us a loan second charge mortgage.
Wasnt happy with valuation or being offered a loan to become debt free so got my own paid valuation done.
It came ib at 103k which select said they woukd accept but still saying 11k in equity. But cannot be forced a secured loan as not in our proposal.
My questin is the amount of equity as was told how it would be worked out. 103k at 85% is £87550. Minus oustanding mortgage is less tge 5k.
Proposal say if valuation shows that 85% of interest in property after deucting loan or existing mortgage is less than 5k then no more need to remortgage.
It also states amount of money introduced into iva at end will be remortgage less existing mortgage and any costs so 4550k. Again less than 5k.
By this i should be looking at the deminus clause i believe. But have heard that aperture interpretate the clause tgere own way
Have sent an email and letters to aperture and current ip to address my issues.
But what else can i do ifi need to.
0
Comments
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Yes Aperture's interpretation of how much equity is available is different from other IP's. Instead of the standard 85% of the value of the property after mortgage deduction = available equity, their calculation of deminimus is e.g. : valuation £120,000, less mortgage redemption £95,000, less agent fees (3.5%) £4,200, leaves £20,800 equity then X by 85% = £17,680 equity. Which means there is over £5,000 of equity available (or £10,000 if a joint IVA). This would of therefore failed deminimus with other IP's based on a normal joint IVA as there is less than £10,000 of available equity.
Whilst a second charge mortgage might not be in your conditions I would consider this if a remortgage is available, as usually this can be a significantly cheaper alternative compared to a full remortgage with a subprime lender i.e. keeping your mortgage on a lower rate as possible.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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