...I too initially thought the 'Third Party' sum would be: 'eg: from a friend/relative' - a bit like if you were to make a F&F offer.
Thought nothing more of it at the time until this issue was raised previously on this forum. (Also, no mention of equity release other than via attempted remortgage when I was arranging my IVA).
The 'discretion' wording provides little comfort either - nice wishy-washy wording, allows for inconsistency among IVA providers.
That said, the rest of the protocol (and my IVA contract for that matter) concerning equity release, seems to specifically refer to the term 'remortgage', not remortgage or other loan.
For IVA customers (like me) at the start of their journey, I cannot even draw much solace from the fact that remortgage is 'near impossible', or that most providers don't go down this route. That might be the case now, but what about 3-4 Year's time?
I suppose the balancing factor is that the resulting additional monthly payment is capped at 50% of your current IVA monthly payment, making it 'affordable', despite the high 'credit Card' interest rate.
As stated previously though, this example (and the previously raised one), are both I guess going to be pre-2010 protocol IVAs, where I understand that harsher terms may apply.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Sub prime lending is already making a comeback. Will it reach the silly levels it was at before everything came crashing down who knows, but if theres a market for lending to those the banks won't touch then someone will step in.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Sub prime lending is already making a comeback. Will it reach the silly levels it was at before everything came crashing down who knows, but if theres a market for lending to those the banks won't touch then someone will step in.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Well, it would seem similar wording is in many of our proposals and I guess what direction our IVA end of term takes will depend upon which IVA company you are with and how well the individual IVA has performed in terms of achieved dividend.
I just think that any IP that would consider using this loan option as an equity release tool should be up front about it when you are at proposal stage rather than making no mention of it at all, only for you to have the bombshell of `it`s in your proposal which you signed`, just when you thought you were close to being debt free.
How many people would agree to such a possibilty and take out an IVA if they were aware of the possibility of a 15 year 20.9% APR (variable) secured loan to accompany them into retirement though???
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
This debate got me wondering if there was anything us homeowners in IVAs could do to to make ourselves less likely to be accepted for such a rip-off product nearing Month 54. (Assuming you have enough equity to be at risk, and a ruthless IP).
An obvious one is to make you place look as undesirable as possible to a potential buyer, adversely affecting any valuation. Its amazing how an untidy / overgrown garden and messy house can apparently affect a house price by £thousands.
Even removing kitchen cupboard doors/draw fronts )and hiding them in the loft for re-fitment later). Maybe deliberately re-hanging one or two, leaving them hanging unevenly off the hinges. All this will fool the average estate agent into thinking 'new kitchen required', and valuing (hopefully downwards) accordingly. Same applies for removing bath panels, and letting bathroom cleanliness deteriorate to 'student house' standards. (Not nice I know, but a means to an end).
Anyone with children and a screwdriver should have no difficulty in achieving the above combination!!! Just how disgusting you want the place to get is entirely up to what you can stomach.
All of the above measures are easily and cheaply put right after you are out of danger.
Also, for example and theoretically, I suppose you could take out a couple of SMALL (as possible) payday loans, then be 'accidentally on purpose' late paying back, racking up some more nice red recent crosses on your credit file.
Even sub-prime lenders have lending criteria, and many may consider you ineligible for their product if you have 'missed a loan/credit card payment is the previous 6 Months' (to quote one provider).
OK, so you rack up a few quid in penalty fees/interest, but still preferable to securing credit card interest rates (or even an additional mortgage) against your property.
Then your IVA provider would have no option but to just extend the IVA for another Year instead (or conclude it at Year 5 if you've really trashed the place).
not wishing to make light of the subject, but just a thought or two.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Good plan, Uptomyneck --- but be wary of getting those small payday loans -- you could end up avoiding remortgaging by failing the IVA !
But, yes, just as tarting up a property supposedly adds thousands, so would "untarting",I guess. If you could get the neighbours to park half a Ford Capri on the lawn that could be the icing on the cake!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This sabotaging of property valuations has been mentioned before. I wouldnt go knocking walls down but not cutting the grass and popping the car on housebricks may help!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I don't agree that a third party sum could be a secured loan - and doubt whether any judge in the land would if challenged by creditors. But the concerns raised on this forum as to interpretation are of interest to me, and I will draw them to the attention of the Protocol Committee to avoid any misunderstandings moving forward.
That's good to hear Melanie. That would put my mind at rest for now. Worried at the posts I've read on here today. I'm a long way off from remortgaging as still at early stages. I guess that there is a lot worried about what could happen.
On the ball again Melanie.
The Protocol is being regularly updated, which is good to see, to reflect changes. I believe there is a new version out this month (but could be wrong).
Hopefully with input from those such as Mel and her colleagues our concerns can be considered and some of the "woolliness" removed at each successive incarnation.
Last edited by Foggy on Wed Jan 09, 2013 12:34 am, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
There is a new version out effective from March 2013 - although it can be used now - so any input on this issue will have to wait until next year's update - if the Committee think the request is sensible.
Good to hear. I'll keep following the feed.
(Along with every other.) I think this forum is great as is everyone who posts advice. So glad I have this forum to follow if in doubt of anything. There's not much you can't find out on here
Perhaps no relief for the OP but fingers crossed their proposal is a non-standard and explicitly stated the option of 'REFINANCE' compared to the REMORTGAGE or THIRD PARTY CONTRIBUTION.
However, as with PPI, at first only some were doing it, then all followed suit. If 3rd party contribution could be interpreted as a further loan and some IP push this through. Then I think the discretion with be removed by other IPs and enforced by the creditors.
