After completing our IVA we have been told that we have to take out a loan

[iamfubb2]

Sorry to keep banging on about this but i think that you will find that Annie1234 writes in a post on the first page that the company managing her IVA has links to a loan firm especially for those in an IVA.

Regards iamfubb2

[Pennyless]

I'm hoping that Annie1234 returns and lets us know the terms of the loan.

[Destiny]

Am I a lucky one here? IVA commenced April 2007.
60 payments then 12 further payments "in lieu of equity". I didn't have an equity release clause in my agreement just these extra 12 months. I am now in that extra 12 month period (so yes, on the famous countdown!) I presume it was because at the time we had less than 5% equity available in our house?

[Michael Peoples]

Destiny.
We used to do that but creditors then modified the proposal to include the property. The subsequent protocol automatically included all properties.

[Destiny]

Yes mine was pre-protocol. I used to feel really hard done by when hearing about others finishing after 60 months but now I feel quite lucky that I know my arrangement will definitely be finished after 72. Although waiting for the completion certificate, that might be another story....!

[annie 1234]

hi everyone and thanks for all your replys,,,firstly the terms of the loan are as follows,,,,,this loan is with shawbrooks if anybodys heard of it,,,,,7.250 borrowed at 180 months,,,lender fee,,795.00,,,,transfer fee,,,35.00,,,,total amount financed,,,9.167.50,,,interest charges,,,,11.602.70,,,,total charged for credit,,,,,,wait for it ,,,,,13,520,20,,,,,the total broker fee plus the interest on it ,,,,24,64.20.....this is foe 15 years ,,if we pay more a month we pay for 5 years ,,,hope this as helped ,,,,,,so we wont be debt free for another 5 years ..;(

[puppy]

OMG!!

£7000 becomes £24000!! What was your eventual return in the £ to your creditors Annie?

[annie 1234]

hi puppy.....,,it was 40p in the pound,,,i hav to nip out for a bit ill get replys when i get back:(,,,of th throw my self under a bus ,,,lol x

[Pennyless]

Annie whats your monthly payment and are payments fixed for the term? Does it equate to more than 50% of your IVA payment?

Thanks for posting the outcome.

[annie 1234]

we owed 28,000 we paid 232 a month for 5 years,,so we paid off ,,,13.800,,,we owe 14,080...they want us to take a loan out for 7,250...plus brokers fees ,,,,will it eva end ,,ill get bak in a bit pennyless ,,have to nip out x

[iamfubb2]

Just had a look at Shawbrook website, seems thy are advertising themselves as a Bank, and are looking for companies to affiliate to them!. Have DFD done this. The terms of the loan you have been offered are a disgrace, and anyone wishing to defend them be my guest.

PS Anyone from DFD have a comment?

Regards iamfubb2

[Pennyless]

So effectively a minimum APR in excess of 18%, whereas as a normal bank would be around 10% and a normal remortgage around 5%.

Thats makes good business sense......a least for the lenders!

Pure EXTORTION but then what other choice do you have...heres hoping my IVA Company sticks to IVA'S, BR's and other methods of assisting clients in getting out of debt, not assisting with a shovel to dig the hole even deeper!

[mole]

So you started with a debt of £28,000.

You lived within the penal constraints of an IVA for 5 years and have paid off nearly £14,000 but are now being saddled with another debt of over £20,000 ????

You are almost back to where you started !!!!

And assuming you can't pay an enhanced monthly amount you will still be in debt for the next 15 years.

That doesn't sound like the best advert for an IVA I have ever seen

[:0]

[Michael Peoples]

Forget about the 15 years and the APR. It is highly likely that in a few years time Annie will remortgage with a High Street lender at normal rates and clear the debt off. The monthly payments are probably around £130 which does seem over 50% of the IVA payment but that may not be in the IVA anyway.

While a twelve montrh extension would be cheaper for her it may not be that she had that option in her proposal and this could be the best deal going.

Finally, if she remortgaged and raised £7,250 I am sure that the increase in rates would push her total mortgage payments up by a lot more than £130 and she would have to increase to 85% loan to value.

Given that this IVA was taken out in 2007 there must have been substantial equity at this time which has been protected and the client can now be debt free for £130 per month and £7250.

[mole]

Annie, you will now have paid some of your original debt and the remainder is likely to have been sold on for pence. Is it possible to let the IVA fail and go back to new creditors now and make DMP plan for a reduced amount for the remaining sums ?? You may be able to negotiate some good deals as they were looking like getting nothing for the debts they bought.

Perhaps some experts will comment whether this is possible or sensible?