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This is the place to ask questions if you are already in an Individual Voluntary Arrangement
By Gcanham83
#33442
Good evening,

I'm a home owner and in an IVA that I've been paying into for less then a year currently. My fixed term mortgage ends in February. I'd like to remortgage and release some equity and pay my IVA off early.

At the time of setting up my IVA I wasn't made aware of or offered a final payment IVA and until reading information on this website didn't know I had that option.

I'll had approximately £99,000 left on to pay on my house, which without getting it valued I'm guessing would be worth £130,000. Would I be able to release enough equity to be able to pay my IVA off, or would it depend on my original debt?
Thanks for any advice in advance.
Graham
User avatar
By Hayden
#33444
Hi Gcanham83

It is certainly possible to settle an IVA early by remortgaging to release equity. The first question is how much will you need to raise? This figure will have to be agreed with your IVA company before you do anything else.

As a rule of thumb the amount will normally have to be equal to (or just less than) the amount outstanding in your arrangement. So if you have 48 months to go and pay £250/mth you would need to raise £12000.

Once you have agreed the figure with your IVA company you will need to speak to a specialist mortgage company to see if that amount can be raised.

One issue you will potentially face is the fact you have not been in your IVA very long. This may restrict the amount you can raise to a max of 75% of the value of your property. If you have been in the IVA more than 2 years this amount could increase to 85%.