Looking for an IVA Mortgage or IVA Remortgage solution?
Help is available from Shire Direct for IVA Mortgages and Remortgages...
Are you looking for IVA mortgage help or other IVA solutions? Well, you'll be pleased to know that there is help available should you require mortgage or remortgage funding, and have an IVA. Here at Shire Direct we may well have just the right IVA mortgage or remortgage solution to suit you!
So below we'll briefly explain what an IVA is, and look at IVA Mortgages and Remortgages as well as explore the available solutions and help available from Shire Direct for IVA situations, with links to more detailed information elsewhere on our website.
IVA Remortgage and Mortgage solutions:
Table of Contents:
What are IVA's? IVA's explained...
The Individual Voluntary Arrangement (IVA), like personal bankruptcy, is a formal, legally binding, insolvency procedure that was introduced in the Insolvency Act 1986. The IVA enables you to pay off the whole of your debt over a period of time, usually five-years, rather than undergoing the trauma and stigma attached to bankruptcy.
A Licensed Insolvency Practitioner, who will work closely with your creditors to establish an affordable repayment plan, sets up the IVA. The IVA is one of the debt management tools to help those in financial difficulties to settle their debts.
IVA Mortgages and IVA Remortgages
As professional and specialist mortgage intermediaries, naturally we have an extensive armoury of financial products to assist in situations where you may have encountered debt problems. These include a range of IVA Mortgage and Remortgage products.
IVA Remortgage
An IVA Remortgage is one of the financial solutions we can utilise once we have established that an IVA is the most appropriate course of action to consider. The IVA remortgage will allow us to restructure your borrowings in order to raise an affordable amount of capital on the security of your home. By doing so, the Insolvency Practitioner we have referred you to, will have negotiated with your creditors to repay them a percentage of the debt you owe, and for you to make an affordable repayment to them over the following four or five years. By doing this, you will:
- Be protected against further action from your creditors
- Be able to keep your home (as opposed to your creditors seeking court action to repossess your property in order to repay some of your debts).
- Have an affordable monthly repayment
- Be debt-free at the end of the IVA (usually 5-years).
IVA Mortgage
An IVA mortgage for purchase is the funding vehicle used in instances where you are either still in an IVA and need to buy another home, or have completed an IVA but want to buy a property. Shire Direct has developed a portfolio of specialist lenders that will consider providing mortgage funding, despite the fact that you may well have experienced serious credit problems in the past.
IVA Mortgage and Remortgage help available from Shire Direct
So, how can Shire Direct help me? Well, we will carefully examine your circumstances, and consider all the options available to you. There are likely to be several different ways in which Shire Direct can help with IVA situations, and these could well include:
1. Full and Final Settlement
For those customers who are homeowners and considering an IVA as a debt solution, if you have at least some equity in your property, a professional Insolvency Practitioner may suggest that you make your creditors a full and final offer of settlement of all your debts based on a percentage of available equity that you can raise. This could mean that the Insolvency Practitioner could, on your behalf, offer your creditors (say) 60p in the £1 as a full and final settlement of all your proposed debts within the IVA. The solution could well be an IVA Remortgage from Shire Direct.
2. We can refer you to professional Debt Practitioners
After careful examination of your circumstances, if we think the most suitable solution is the IVA route, or some other form of debt management, we are able to refer you to professional debt practitioners.
3. Year 5 Settlement
If you have not been in a position to negotiate a full and final settlement IVA contract, an affordable monthly repayment will be determined, and during this period, you will be protected from your creditors. However, at the end of the 5-year term, you will be expected to realise (cash in) some of the equity you have built up in your property, in order to repay your creditors any balances that may be due to them. Although this may appear to be very harsh, it will usually be the key factor in whether or not your creditors will approve the IVA at the outset.
Thus, in the process of setting up the IVA, creditors may include a clause that requires that after (say) 5-years, at least some of the equity in your property will need to be released as a final payment to the creditors. Accordingly, you are likely to be limited as to when you can remortgage, and because of the severity of the IVA activity, the number of lenders that are prepared to consider your application will also be restricted.
Even if you have an IVA, Shire Direct will usually be in a position to help with our close links to specialist lenders who are willing to lend to people with IVA's, so a quick call to one of our qualified mortgage advisors will soon put you in the picture as to how we may be able to arrange an IVA remortgage in order to finalise your obligations under the IVA.
4. After your IVA is completed
Once you have completed your IVA and are free from debt, you may need to borrow mortgage funds again, either to purchase another property, or to remortgage to raise capital. Because of the IVA, although it is completed, you may well find that the conventional lenders will not consider you to be an acceptable risk. As ever, we'll carefully assess your needs, requirements and aspirations and come up with the most appropriate IVA mortgage or IVA remortgage solution for you.
Additionally, you may find the following pages from our Mortgage Glossary to be useful when considering solutions to assist with your IVA mortgage or IVA remortgage requirements:
So, that concludes our look at the IVA mortgage and remortgage solutions available from Shire Direct. We are available seven days a week on Freephone 08000 282 281, our lines are open from 8am until 10pm, or alternatively why not enquire online at any time - in either instance we'd love to hear from you and will be delighted to be able to help or provide further information regarding IVA's, IVA Mortgages and IVA Remortgages.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
