Smaller Deposit

High LTV

Customised Deals

Individual Voluntary Arrangement Remortgage – The saviour of tough times

Individual Voluntary Arrangement is a tough condition for anyone, as paying huge debts is never easy. A remortgage can help in such conditions to pay off the debts. Shine Mortgages owns the expertise and calibre to bring you the practical solution through individual voluntary arrangement remortgage deals with affordable offers. We have 90+ lenders on our panel out of which several provide funds for such circumstances. We can assure you a happy borrowing experience with our team of experts destined to serve only THE BEST.

What is an Individual Voluntary Arrangement Remortgage?

An IVA remortgage is an escape from bankruptcy. It allows you to turn the equity of your home into cash to pay off debts and become debt-free. This mortgage product has become popular in recent years, and after covid-19, it is much more in demand.

Pros and Cons of Individual Voluntary Arrangement

Shine Mortgages gives you balanced information to support in making a rational decision. Here are the pros and cons you may have to face due to IVA remortgage –

Pros Cons
It is a less expensive option than bankruptcy, which includes stringent and suppressing procedures. An IVA remortgage is more expensive than the standard remortgage product.
Creditors also give priority to this option as they can get more than what they expect through bankruptcy. It is not possible to get a remortgage with customisation feature because the lender already takes a big risk
This method allows for borrowing money without taking help from others. This method allows for borrowing money without taking help from others

Terms and conditions applicable while remortgaging your home with an IVA

The difficulties with an IVA are many, and some cross your way while remortgaging. However, we have experts to suggest all the possibilities of a smooth remortgage for your home. Know about the issues that arise when you try to get a new mortgage deal on a property.

  • During an IVA, there are restrictions on the sale and remortgage of a property. To do any of these, you need the permission of the supervisor.
  • All the facts and details about the remortgage of your property should be mentioned in the IVA proposal; otherwise, you cannot get things done.
  • It is not possible to send the remortgage application to a lender until the supervisor comes to discuss how things can proceed legally on property remortgage.

The role of IVA provider during the remortgage

Before you start anything on the part of remortgage, some formalities are due on the part of your IVA provider.

  • The IVA provider asks your lender for a redemption statement to know the overall cost if you pay it off for a remortgage.
  • Points mentioned in the redemption statement are –
  • Current mortgage balance
  • Outstanding interest
  • Daily rate of interest
  • Redemption/closure fees (if any)

Property valuation – The IVA provider also keeps an eye on the property valuation because the debt settlement depends on it a lot. However, it happens online most of the time, but the provider may feel the need to send a local surveyor for the site visit.

How does remortgage happen during an individual voluntary arrangement?

Normally, the remortgage happens on the 85% LTV of your home, but it may have a lower loan-to-value according to your latest financial circumstances.

  • The value of the property will be reduced by 15% or the percentage according to the LTV
  • From the left amount, the figure of the mortgage will be deducted
  • The sum that is left after this calculation is your equity that can be used for the IVA
  • You have to keep the IVA provider informed during the complete process of the remortgage

Did you know? - You cannot apply for a mortgage on any equity amount. It is possible only if the equity amount is above a certain amount. If the equity amount is small, you may not get permission for a remortgage with IVA. Normally, it is allowed if the level of equity is above £5000, especially if the LTV is 85%, a generally decided limit.

What if your individual voluntary arrangement remortgage application gets rejected?

We always suggest our clients to stay rational about their situation and stay ready for any result on their application. Transparency is our strongest tool to act dependable for our customers. If your individual voluntary arrangement remortgage gets rejected there are three situations to happen to you.

  • We can find another lender for you that has a more suitable deal
  • A third party can pay a lump sum amount up to the value you own on the property
  • Extra payments for 12 months, the total money paid through this method is never larger than the interest you have in the property

Shine Mortgages is always ready to help you with the most instant and accurate help through best Individual Arrangement Mortgage options. Our fee-free broker services aim to help you clear off all your debts with less or no hassle. The convenience of the customer is our prime focus, and we prefer to leave no stone unturned to make it happen. Come to us, we are there 24x7, also on bank holidays to make sure anyone in need is not unattended whether it is day or night.

Individual Voluntary Arrangement Remortgage FAQs

How to find an Individual Voluntary Arrangement remortgage?

Explore the mortgage options online, or if possible, rely on professional assistance because, with a condition like IVA, your case is a complicated one. Hire a mortgage broker and take proper advice, as that can help you make no mistake.

What can be the impact on my finances after IVA remortgage?

Once you get the IVA remortgage, there will be restrictions on your spending habits. The IVA provider may want to have a look at how you spend your money and know about how you plan your budget. In short, you need to be on toes on whatever you do with the money. It is advisable to spend any spendthrift behaviour. There will also be a decided limit of withdrawing; normally you are not allowed to take more than £500 from your account.

How much time I will get to apply for a remortgage before the end of IVA?

You need to remortgage six months before the end of the arrangement, and during this time, you need to pay a lump sum amount. It is advisable to apply before this time duration because, with an IVA, your application may take more than the average length of 18 to 40 days.