Is this a normal situation for remortgage clause? I've been put In touch with the select partnership through dfd who are suggesting a secured loan as its cheaper than a remortgage. I'm in a single iva with joint home ownership and they are stating my husband needs to co sign the loan and I need to pay setup fees to get a lower interest rate loan. The equity clause in my agreement was for a remortgage not a secured loan. What happens if my husband doesn't agree to Co sign. They have said I can't secure credit alone against a jointly owned property. Agghhhh
Sorry for the late response, The interest rate on the loan will be 11.9% which, for an IVA client is very good. The loan does not have any early repayment charges with the exception of a £195 deeds release fee this means that if you can=me into a windfall, extra funds or inheritance then you could clear it off early, so over 15 years it would be £213.44 per month, over 7 years it will be £314.67
per month. A remortgage over 20 years would be at a rate of 8.5% costing £806.03 per month.
On the face of it the loan beats the remortgage -- BUT --- what does the proposal say is the alternative to a remortgage if it cannot be effected ? Most proposals offer a 12 month extension, which is probably ( depending upon your normal IVA repayment amount) cheaper than either the loan or the remortgage!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with Foggy, check the proposal thoroughly and challenge the secured loan if it's not the route you want to take unless specifically stated in the proposal
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
They cannot force a loan on you -- they can only act as per the agreement. You need to attempt to remortgage and get refusals in writing -- if this fails ( as it usually does at the moment) then a 12 month extension is provided for in the agreement and the property is excluded from the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If your proposal says a remortgage I would push for this. However on the other hand if your remortgage figures are right then I wouldn't! What have your IP said would happen if you could remo but you didn't want to because of the high rate?
The loan looks attractive compared to the remortgage but its got to be right for you.
Tough decision. Good luck.
its £521 with 14 years remaining. Sorry about the different user names I'm having problems with site password retreival. Its honneyj.
my husband really doesn't want to do anything with mortgage and would reluctantly go ahead with the secured loan option although very warily. In my mental state at the time I really can't recal if he signed any papers to agree to this, Although he did sign a form to state we wouldn't sell in 5 year period. He was so angry at time he wouldn't get involved at all.
