Individual Voluntary Agreement Mortgage

Individual Voluntary Agreement Mortgage

It is important to understand the true meaning of individual voluntary agreement mortgage. Each has an effect on the other. For a debtor that has equity in their property and if this equity is quite substantial then they may be required to release a part of that equity in order to clear their debts. In order to find out your equity in your property, you will need to determine the current value of your property and from this figure you will need to subtract the outstanding debt amount to your mortgage lender.

Individual voluntary agreement – a drastic thing?

For many people, individual voluntary agreement mortgage may seem to be a drastic thing but if your creditor is also a mortgage lender then the individual voluntary agreement mortgage solution is the best means of avoiding having your home repossessed and it also gives you a better chance of getting your financial situation back on an even keel.

Endowment policy

In case you also have an endowment policy that is attached to the mortgage that you have taken, then in all probability you may also be asked to cash in the endowment policy so that you can obtain funds with which to clear off your debts.

Best bet

An individual voluntary agreement represents a debtor's best bet in so far as clearing off their debts go. Such an agreement can also ensure that the debtor will not find it necessary to file for bankruptcy in order to be rid of their debts. However, the individual voluntary agreement is not exactly a very simple solution as the debtor will need to work hard in order to comply with its terms and conditions.

An individual voluntary agreement mortgage is something that has special implications. For example, most individual voluntary agreements require that the debtor tries to take out a new mortgage in the fourth year of their agreement. This remortgage will then be utilized as a major part of the individual voluntary agreement settlement.

The trouble is that when it concerns an individual voluntary agreement mortgage, there are certain risks associated with a new individual voluntary agreement mortgage and given the poor economic condition these days, those who enter into an individual voluntary agreement will find it hard to obtain a remortgage. Therefore, before getting involved in individual voluntary agreement mortgage, be sure to obtain expert advice.

This advice can help you understand the pros and cons of an individual voluntary agreement mortgage. The good news is that though the individual voluntary agreement will have an effect on your credit ratings it does not mean that you are legally not allowed to obtain a fresh mortgage or any other kind of credit product after the settlement of the agreement.

The trouble is that up to one year after the settlement of your individual voluntary agreement, there will be a negative impact on your credit rating. During this one year, it then becomes hard to obtain an individual voluntary agreement mortgage though even so obtaining a mortgage will not be impossible. So, even if you have been in an individual voluntary agreement, you can still obtain individual voluntary agreement mortgage from a specialist in such matters.

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