Yet again DFD in the frame for this 'secured loan' hard-sell rubbish.
Joanie,
What is the exact wording of your IVA in relation to equity release? Assuming you have a relatively modern protocol-compliant IVA, if you are unable to remortgage, your IP should accept a 12-Month extension to the IVA instead.
Have you actually been accepted for a sub-prime remortgage? If the answer is 'yes' then as DFD suggest, a secured loan for a relatively small amount MAY work out cheaper than remortgaging your whole property at a sub-prime rate.
If as I suspect however, you have NOT been accepted for a remortgage (which is the norm at the moment), AND your IVA makes specific reference only to remortgaging (NOT any other type of secured lending), then you should be telling DFD to take a long walk off a short pier.
However, I understand that some older IVAs (pre-2010 protocol), have much more stringent equity release clauses, where the bottom line is almost: 'remortgage to release equity, or sell-up'. Whilst some older IVA's have had this clause modified to bring it into line with modern provisions, this is not always the case it seems. (There have been other posts on the forum, where the customer quoted similarly harsh terms to still be in place).
Very few IVA customers seem to qualify for a remortgage no matter how much equity they have. So faced with the prospect of losing the house, a secured loan is far more preferable if you have this 'harsher' equity release clause in place.
Last edited by UpToMyNeckInIt on Sat Jan 25, 2014 5:27 pm, edited 1 time in total.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
The original proposal stated that on the expiry of 4 years from the date of commencement of the arrangement and no later than 6 months before the intended completion date, I shall commence steps to effect a remortgage of my equitable interest in xxxxxx (address). I will instruct an independant professional valuer to proovide me with a written valuation of such property. I will also obtain the outstanding balance of the mortgage. I will calculate the quity position in the property in order to help me establish my prosepects and cost effectiveness of seeking to obtain a remortgage. I shall provide all this information to my supervisor for jis consideration within 28 days of the date referred to above.- See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 164#537900
The select partnership have stopped chasing me since I questionned their fees? Very suspicious. My agreement says I need an independent property valuation- how do I get one of those? Also if I want to get three mortgage quotes do I go to normal lenders and do I just say I want 85% ltv even though that would cover more than I owe?.. I wish someone could just sort this all out for me, I'm so stressed out I feel like just signing up to the flipping loan to end the whole thing
To get a valuation - you just need to instruct a local estate agent. If they insist on charging you for this, then these costs should be borne by your IVA estate - so no additional costs to you directly.
If you need to get three re-mortgage quotes, I suggest that you get one from your current lender, one from the Select Partnership (on the basis that they already seem to be engaged on your behalf in some capacity) and another from an Independent Financial Advisor. I doubt that any of them will give you a re-mortgage offer, so you are then back with deciding whether to extend the IVA for up to 12 months to cover any equity available, or take out the secured loan.
