- Wed Feb 26, 2014 7:58 am
Hi there Tbabs and welcome to the forum
I understand your concern with your mortgage and starting an IVA. Firstly, if you are in a DMP your credit rating will have been affected and you will still struggle to get a new mortgage in 2 years with a good rate of interest unfortunately. It is best to wait to move if possible or rent somewhere instead of trying to get a mortgage. However, if your DMP is going to last many years you may want to look at another option.
Secondly, is there any equity in your house? It is true that end of your IVA you will need to try to release equity but this is only if there is any. Also it will be almost impossible to remortgage again due to your credit rating and it is more likely that if there is equity to release your IVA will simply be extended for another year to compensate your creditors instead and your equity will no longer be at risk. you are not forced to sell your home in an IVA.
If you can tell us a few more details of your situation we will be able to help more. If you are looking at a longer time than 6 years to pay your DMP an IVA may well be the better option.
Melissa McDonald writes articles and blogs about debt solutions and how they can be implemented. She aims to reassure people having debt problems that they can be debt free!