ive been offered a loan at 18.9 per cent interest by DFD to release equity in my property the repayments will be 410gbp per month my i.v.a is 408 per month last payment due this month.problem is i can not afford it .its ridiculous its like doing an i.va twice the repayments are over 7 years as i.m 60 now .i can not afford that level of debt dont really know which way to go with this.i have tried other lenders , when i mention i,m in an i.v.a no one wants to know. have you any ideas about which way i should be steering this
anyway many thanks
Hi Geoff 7 more years at slightly over what you have been paying for 5 years. I know I personally wouldn't be happy with this but not sure what if anything you can do but I'm hoping one of our other posters will have some advice for you.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi Geoff -- which company are offering this loan where others fear to tread.
Have a look at your paperwork. Generally a remortgage shouldn't cost more than 50% of the IVA payment and shouldn't extend beyond retirement age. I am hoping your paperwork refers to REMORTGAGE, and not raise equity by any means.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If this going to end up a trend and lets face it Debt Free Direct are one of the big boys in this Industry, any debtors with a decent amount of equity in their property may be better at trying to secure a secured loan and offering a full and final with the proceeds before entering into an IVA and then handing over control of their finances to a third party who will play them along for five years before dropping a bombshell, Its OK telling debtors to check their paperwork ie What they signed up to, however as I remember unless it has changed is that the IVA proposal which is proposed by the Nominee a qualified Insolvency Practitioner should be governed by the following conditions,
1) Is the proposal feasible?
2) Is it fair to creditors?
3) Is it fair to the debtor?
4) Is it an acceptable alternative to bankruptcy?
5) Is it fit to be considered by creditors?
I think the third statement fair to the debtor possibly relates to this, debtors trust the nominee to propose a fair proposal, its like shaking hands with someone and having to later count your fingers.
Geoff, im really not happy at all with the way your being treated.
I think you really do need to take some serious legal advice on this mate. From reading your post it just sounds like they are trying to stich you up as much as they can.
People entering IVA's in the future really do need to check what they are signing up for.
Maybe we should start getting all the bl**dy banks to start selling their property. Nothing but shamefull in my eyes.[:(!]
Stick to your guns and dont be pushed into anything.
Geoff I'm absolutely lost for words on this one, but it is ridiculous to make you do that. I would be doing what Lesley said & going through my IVA proposal with a fine tooth comb.
If you want to put any bits of it on here then please do, then we can scrutinise it with you.
I hope we have a expert come & help with this soon.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Hi Daniel. I completely agree with what you say. The reason we do keep telling people to check their paperwork, especially in this case, is in the hope that the clause signed up to is categorically at variance to what the IP is trying to foist on the client --- just strengthens the arguement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We are with DFD and, although you are a bit further on, if you had a 5 year IVA then you were possibly drawing up yours at a similar time to ours.
Having gone back through my and husbands chairmans report I can say in ours that:
1. The clauses all refer to re-mortgage NOT secured loan.
2. Any additional payments due to the remortgage could not be for more than 50% of our current IVA payment.
Therefore if you have the same clauses in your I am not sure DFD could force you into the loan you mentioned.
I have always found Judith at DFD extremely helpful at solving problems that no-one else could seem to come to an answer with. Here email is janderton@debtfreedirect.co.uk so it might be worth dropping her a line as what they are asking of you does not seem right to me.
Good luck
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
Like the others have said, check your proposal and if this condition isnt stated or is vague then complain first internally to your IP and if that gets you no where, then to the IPs regulator. Obviously if you had known this might happen you may well not have agreed to the IVA in the first place.
You're not alone in this either, a lot of other posters have also said they are being forced down the same route. So unless this was made clear to you from the begining, or its specifically stated in the proposal that something along these lines might happen, then I would at least try the complaints process to begin. If this doesnt help, consider legal advice if you can.
I would phone up the FOS, they are very helpful indeed, to a first informal chat, and if appropriate they will help guide through any complaint process required.
Also may I point out that if Geoffs proposal states re-mortgage then this surely cannot be substituted for a secured loan in the sense that a mortgage is defined as having "first charge" over the property. A secured loan would be defined as having "second charge" over the property and therefore they are 2 different things and not interchangeable if remortgage was stated in his clauses? Just a thought?
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
