Individual Voluntary Arrangement Remortgage
For people with struggling debt problems an Individual Voluntary Arrangement (IVA) can be the best way to stave of the threat of bankruptcy and get finances back on track.
An IVA works by consolidating monthly repayments by reducing the amount paid to creditors in to one reduced monthly sum, potentially saving you hundreds of pounds, three quarters of your creditors will need to agree to the terms of an IVA for it to be able to be set in place. Unfortunately during the term of an IVA which is usually five years and for a while afterwards your credit rating will be greatly affected, meaning you will struggle to take out any sort of loan or re-mortgage.
Taking an Individual Voluntary Arrangement re-mortgage
To be approved for an IVA it is required that you have debts anywhere upwards of £15,000; this is a lot of money to repay to creditors. An Individual Voluntary Arrangement re-mortgage on your home could help to reduce your debts substantially by releasing much needed equity in your home, giving you thousands of pounds that can be used towards your debt. Of course if you have an IVA it is likely to be hard to be able to re-mortgage.
This how now changed with more and more companies specialising in Individual Voluntary Arrangement re-mortgage and other kind of debt equity products.
Applying For an Individual Voluntary Arrangement Re-Mortgage
Applying for an Individual Voluntary Arrangement re-mortgage is done in much the same way as applying for a regular re-mortgage product; you submit an application to a lender and have meet the criteria they set. IVA re-mortgage companies set criteria are for obvious reasons a lot more strict than regular ones.
- They will look at how long your IVA has been satisfied before making a decision
- There are strict guidelines on mortgage arrears. Lenders will expect that any arrears are three months of more in the past.
An Individual Voluntary Arrangement re-mortgage is more than likely to cost you more than a regular one. This is due to the fact you will be seen as a high risk candidate and therefore will be required to pay higher interest rates.
Online Brokers?
When searching around for an IVA re-mortgage product using an online broker could be a good option. They work by searching through hundreds of lenders and products to find you the best possible rate. This could save you precious money in repayments.
You are not required to have to keep your re-mortgage product for ever, you can just use it to free up the needed equity in your home and pay off creditors. Once your finances begin to pick up and your mortgage payments are on track, your credit rating will also begin to rise giving you the option to apply for a better deal with lower interest rates and reduced monthly repayments.
IVA re-mortgages can be a useful way to help relieve the burden of debt; there is plenty of free advice across the internet to help you search out a deal that suits your needs.