Full & Final - Secured Loan

[simon363]

Evening All,

I'm really keen to settle my IVA and make a full and final proposal to PayPlan.

Having calculated what I think will be a fair settlement, I'm unable to raise the full amount by using friends and family.

I have been speaking to the mortgage advisors that are recommend by others in this forum about what options I may have.

We've looked at remortgaging, but given I'm in an IVA, it would require a specialist lender that would make monthly repayment unaffordable, and in their words would be in breach of the terms of my IVA. They commented that even just trying to remortgage for the same value of my currently mortgage would see my repayment increase by around £300PM.

They have however suggested looking at a secured loan, which based on the same monthly repayment of my IVA would give what I think is a favourable amount as a F&F offer.

Has anyone got any experience of a F&F settlement being accepted with the mean of funds coming from a secured loan?

Thanks

[bowline]

How far into your IVA are you?

What are the terms of this secured loan - how expensive is it and over how many years?

This is a very dangerous thing to do - you are switching debt that is under control with no interest being added, where the creditors cannot touch you in an IVA and which will all be written off at the end of the IVA for a secured loan putting your house at risk.

A secured loan will also make it harder to get a new fix on the current mortgage with a new lender, so when does your fix end?

[Cupcake08]

Hello,

I took a secured loan in lieu of extra year of payments when equity release clause kicked in. This was tailored to my circumstances - I am selling my property now so will settle amount owed. It was a short term fix to get me where I needed to be and it was all achieved in line with protocol of my IVA. My advice is to approach a professional broker with experience, I used Select and they were very professional. You are able to explore options, I was desperate to move due to escalating anti social behaviour.IVA provider unable to help so I had to put on my big girl pants and enquire but choose provider wisely - I can vouch for Select and have heard other Forum experts I've Zebra are excellent too. It is true the rate is high but that is linked to risk we present and because I am paying loan off early I won't be paying a double digit rate over double digit years. Current climate is another factor, the monthly amount I pay back is linked to protocol so was less than IVA contribution. As I said check with IVA supervisor and approach trusted providers and investigate. For me the effort was worth it and I took advice according to my circumstances. Good luck to you.

[Cupcake08]

One other thing to be mindful of your creditors will be expecting something in kitty from property. I am no expert but my supervisor would not put anything in front of them that was favourable to them. Foggy may disagree with their approach but it happened. The peace of mind paying your dues and moving on is immense and when the defaults are off the old. Credit report - brilliant. I am rehabilitated and 100% wiser.

[Cupcake08]

Sorry I meant not favourable to them - the creditors.