Remortgages and Lump Sum IVAs

What is a Remortgage

A remortgage can be a useful way of clearing outstanding debts. If you own your own home and have equity (i.e: your house value is greater than your mortgage), you could use this equity to repay your debts.

What if I do not have enough equity after a Remortgage to clear my debt?

Even if your debt is much more than your available equity, you may be able to get your creditors to write off some of your debts and accept your equity release as a full and final settlement through a Lump Sum IVA . Here you would get your creditors to accept just a percentage of the debt and legally write off the remaining balance. The lump sum IVA differs from a normal IVA as it can be done via just 1 payment instead of 60 payments.

What is the criteria for a Lump Sum IVA?

-you must qualify for an IVA under the normal criteria of having over £15,000 in unsecured debts owed to at least 2 creditors.
- you must have a small disposable income (income - essential expenses = disposable income)
- you will need to have access to enough releasable equity from your property, or know a third party who is prepared to introduce a lump sum for you.

The lump sum should generally be at least 25% of the total debts, plus enough excess left over to cover the costs to the creditors

Find out if you qualify by filling in our Questionnaire and we will contact you to advise you.
Our advice is free so you have nothing to lose.

Call us on 0800 043 0200 to discuss a lump sum IVA now.