Dealing with your property
How your property is to be dealt with is written into your IVA proposal, and a copy of the property terms will be sent to you when your IVA provider starts the review. This is usually sent six months before your IVA is due to finish.
During your review, your IVA provider should:
- ask your secured lenders for an up-to-date redemption statement (this shows how much it'll cost to pay off your mortgage at this point)
- complete a valuation of your property
- send you a copy of the property sections from your IVA proposal
Here's more detail about each of these stages:
Your IVA provider will write to your secured lenders to get a recent redemption statement. This usually contains your current mortgage balance, any outstanding interest, your daily rate of interest, and any redemption or closure fees that may apply.
If they’re unable to get the statement, they may contact you to ask your mortgage lender to provide the redemption statement.
Valuing your property
The valuation of your property is completed online. However, in some cases your IVA provider may need to instruct a local surveyor to visit your property.
The remortgage is based on 85% loan to value of your property.
This is worked out by reducing the value of your property by 15% and then taking away the amount left on your mortgage from this figure. The amount that’s left over is the equity that's available for your IVA.
Once this calculation is completed, your IVA provider should write to you to confirm the outcome and explain the action you will need to take.