IVA Remortgage: Its Implications on Your Assets

IVA Remortgage

Only assets can be taken as a mortgage, thus along with that the facility of remortgaging is also available. The IVA remortgage only takes place during the presence of the IVA. By following the basic rules and regulations, you will be restricted from using the assets. Therefore, no question of remortgaging arises. 

All the details of dealing with the assets will be given in the IVA proposal. Before risking your assets you have to make sure that the IVA will be right for you or not. On the other hand, you need to get all the information regarding the remortgaging process. 

What are its Implications?

When you are about to give away the last and final payment, your creditors might approach you regarding the release of the equity value. Therefore, certain implications must be there for fulfilling the eligibility criteria of remortgaging. 

  • The total amount of debts that are present against your assets must not exceed more than 80% to 85%, depending upon the current assets values ongoing in the market. 
  • The cost of payment at the end of every month will be affordable for you. The monetary value of the remortgage will be deducted from the IVA payment that will never increase more than 45% to 50% of the total payment. 
  • The amount that is based on the equity value of the assets will never increase the amount of the total unsecured debt value. 
  • If your age is proceeding towards 60 years, it is generally known as the retirement age. In this type of situation, the mortgage amount will not exceed. 
  • In case of the cost of redemption, the amount of money will be included at the beginning of the IVA which will be the net amount to be paid off. 

Don’t worry, if you ever feel confused about this type of matters, always consult with your hired Insolvency Practitioner. 

IVA Remortgage: Dealing with the Assets

Here, the terms and conditions will help you in dealing with the assets. The terms and conditions of regulating the assets will be delivered to you during the review of the IVA. During the IVA review process, you must concentrate on the activities of the IVA provider. 

  • Ask the creditors to give the redemption statement and keep it up-to-date. 
  • The complete valuation report of your assets.
  • Ask them to show the copy of the asset list, kept out from the IVA. 

Always allow the Insolvency Practitioner to deal with this kind of matter. It will help you to get rid of any type of distraction or misunderstanding. 

The Mode of Asset’s Valuation 

The valuation of your property or assets will be completed online by the professionals of the IVA company. If required, the IVA provider might ask the person who surveys assets to pay a visit to your property for verification. 

Some of the Key Guidelines

The process of remortgaging will only be valid when it fulfils more than 85% of the loan to the assets. Somehow, this process will be optimum when the value of your assets will be intentionally deteriorated by 15%. After that, the remaining amount will be given to the creditors and will also be available in the IVA records. Here, the role of the IVA is very important. He/she will inform you about all the details of the results and urge you to take necessary actions. 

What is Joint Remortgage?

It’s very natural that you, along with an acquaintance jointly own an asset. But somehow, the other person is not in your IVA. So, what are you going to do? Tell him/her about the entire matter and convince the person to understand the entire situation. After that, give the person a copy of all the necessary files of the IVA proposal. After observing all the papers, the person has to agree with all the terms and conditions regarding the IVA remortgage. 

Interesting Facts on Equity

Equity is basically an ultimate value that your assets have. The equity value of the assets is directly proportional to the IVA. In the case of the joint assets, when your share of the equity is less than five thousand pounds, then no additional steps are required as you are following all the terms and conditions. 

So, the result is not remortgaging your assets any more. On the other hand, the IVA will continue to run which will depend upon the fixed monthly payments, as agreed. Now, coming to the value of the equity share of more than five thousand pounds, it’s better to plan and then apply for the remortgage. The mortgage provider can give you additional assistance regarding this matter.

Calculating the Equity Value

The process of calculating the equity value is simple and straightforward. First, gathering all the necessary information is mandatory. Some of them are like the main valuation of your property, checking the redemption statement, other statements of secured debts and many more. On getting complete information via papers, the IVA provider will calculate the exact equity value. 

Equity Clause: Guidelines

After calculation, the equity clause comes with a number of guidelines. Let’s learn them: 

  • In the equity clause, the total amount will not exceed more than the outstanding amount.
  • The monthly payment will not be more than 50% compared to the normal amount. 
  • The value of the loan will be 85%, which is the maximum amount on your share of the asset.
  • In the case of new debt, the equity must not extend to the end of the previous or existing mortgage. 

If you have to pay any type of extra charges or fees in the new debt, then the payment can be done once the IVA gets over. There will be no time limit regarding that. 

Remortgage Cancelled? What can you do now?

A cancelled remortgage will not lead you to a comfortable situation. But, there is always a way to sort things. Yes, you can still maintain the IVA. Pay a visit to the person who has provided you with the IVA. Try to discuss the value of the interest that your assets reflect. Other than that consult about any type of extra monthly payments where you have to pay the total amount, but the interest will not be more than 85% on the fictitious or non-fictitious assets.