IVA Remortgage

Introduction to IVA Remortgage

The number of people who are struggling to make ends meet in the UK is getting bigger and bigger each and every day. The reason why this is happening is that the costs of essential expenses are getting higher and many people have debt problems, and for some the bills are higher than their incomes. Another problem people are having these days is credit cards, which makes people stop worrying about their financial difficulties for some time. However, the fact is that these expenses need to be paid eventually.

In recent years, IVA remortgages have become very common in the UK as one of the ways to pay off many different kinds of debts. There are many people who have been forced to take out an IVA for many different reasons such as a decrease of income, a divorce, a sudden illness of a family member and so on. When an IVA is taken out, people are always trying to decrease the amount of time needed for the IVA to be finished. One of the best ways to do so is to take out an IVA remortgage.


What Is an IVA Remortgage Used for?

An IVA remortgage is an adverse credit product, meaning that people can get a loan against their home. This product is mostly used when people have enough equity to release from their home and to pay off an IVA in advance. In some cases, the amount of equity can be even enough for a full and final IVA plan, meaning that in these cases people will release the equity from their home and pay off the IVA instantly. The main benefit of paying off an IVA in advance is the fact that people do not always have to wait for the period of five years to pass, making it easier and faster for them to regain a good credit rating. On the other hand, if the equity is not enough to pay off the IVA completely, it can significantly shorten the period of the IVA. This means that the IVA plan can be finished in the fourth or the beginning of the fifth year, leaving more time for people to get out of debt.

In addition to paying off the IVA in advance, the IVA remortgage can also be used for many other purposes. People can use the equity of their homes to pay off some other expenses or loans they might have, again making their credit rating better.

Disadvantages of the IVA Remortgage

One of the most important disadvantages of an IVA remortgage is the fact that these loans have much higher interests than usual mortgages. Owing to this fact, opting for an IVA remortgage should never be taken lightly. People are advised to do a lot of research on the subject and talk to as many debt specialists as possible in order to get a clear idea on what they should and should not do. Also, there are many IVA companies that offer the service of IVA remortgage, but not all of the companies are straightforward and not all of them will act in their clients’ best interest. Therefore, people are advised to think carefully before taking out an IVA remortgage.


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