hi ,,, im due to remortgage in the 4h year

[kallis3]

If your IVA is a couple of years old, then I don't think it will be a compliant one, as they only came in 12 months ago.

If you cannot remortgage when the time comes, then you may find the creditors will expect you to continue for a further 12 months.

The best thing to do would be to speak to your IP and get them to explain your circumstances to you.

[MelanieGiles]

The IVA protocol was only introduced in February of last year - so the answer to Northumbrian's query lies within the actual proposal or chairman's report.

Any proposal clause relating to the property, or modified by creditors, ought to have been clearly explained to you at the time you entered into the agreement - at which time you exercised choice. If you feel that you were not properly advised at the time, you should discuss this with your IP - as the treatment of the family home must be very clearly explained, and I get my own clients to sign a statement confirming that they fully understand this vital contractual commitment.

[kalla]

Worry about it when the 4th year arrives, it is no good to fret till that day arrives...you might win the lotto???

[MelanieGiles]

Absolutely not! It is vitally important to understand what is required from day one onwards - and this should have been clearly explained. Please do not wait until the 4th year arrives to understand exactly what you are going to be required to do, so that you can plan and research the options available to you.

[Skippy]

Kalla, that's ridiculous. It's important that people understand what they are getting into as we are talking about their homes.

To suggest that they should basically wait and see what happens in 4 years is irresponsible.

[kallis3]

I totally agree with Skippy and Melanie, and can't see where you are coming from there Kalla.

People stand more chance of being kicked to death by a Spanish donkey than winning enough money on the lottery to clear their debts!

The 4th year clause is something that should be taken seriously from day one, not something that should suddenly be thought about when it is about to happen.

[David Mond]

Number1caddy - Need to examine the Proposal and any modifications in respect thereof and ascertain what advice was given to you at the time the Proposal was put forward to your creditors. Then advice now can be given properly. Money Debt & Credit are a reputable company.

[MelanieGiles]

Weren't they the company who told Jan (Kallis) that she and her husband could not do an IVA and should go bankrupt?

[David Mond]

Don't know - but that particuliar advice by a member of their staff might have been wrong but does not make them disreputable!

[kallis3]

Fortunately, I'm not the sort who scares easily, but I wasn't impressed with them - they even told me I couldn't do a DMP either, and I didn't appreciate being told I could only go BR.

I wouldn't recommend them to anyone.

[northumbrian69]

Sadly not all IP's are as efficient as Melanie, in my case the 4th year equity release clause was more or less brushed aside as not important, consequently I'm stuck with it.
It's very easy to criticise someone for agreeing to the clause when not fully understanding the implications, unfortunately when you are going through the IVA process, stress levels are at danger level, you are on the receiving end of constant harassment from creditors, you have so many things on your mind that when you receive that phone call to say your IVA has been approved you are so relieved that, when you are told, 'oh by the way your proposal has been amended to include a 4th year equity release clause' you still sign without fully understanding the long term implications.
If it had not been for this forum I would still be blissfully unaware of what the future holds, until year 4 comes around that is.
I still don't understand what the financial implications are because I can't find out what 'lending criteria' rules apply or which lenders are willing to grant remortgages to people in IVA's, I would guess that the interest rates will be considerably higher than high street banks, it's a bit like 'out of the frying pan, into the fire'.
Can anyone suggest who to contact to gain a better understanding of 4th year equity release lending criteria because I'm becoming more and more confused, if I am reading 'welsboys' post correctly an IP is not the correct person to talk to for remortgage advice so who can I talk to, I can't see me getting much joy from any of the high street lenders.
Help please[?][?][?]

[Skippy]

Why not speak to Welshboy? He really knows his stuff and will be able to give you good advice.

[MelanieGiles]

And I am happy to talk to you if you want to give me a call.

[molly16]

this has been an interesting read . we will be remortgaging this year . we are with synergi and tbh they havent bothered with us much , but when i spoke to a lady there the other day she said they would step up the reviews , do another one in may ( we started nov, but paid 3 months before start date ) then give us all the stuff /advice for remortgage. our iva states ....
the debtors interest will not be restricted to 23,300 but the full resultant equity at that time . a remortgage of no less than 85% ltv will be obtained .
i think the amount of equity does remain at that as we started our iva 2005, house prices went up and now they come back down to where we started. cant see us getting 85 %ltv as we are probably not far off that now . our current mortgage is 84 k ( house value 119 k) although im not sure yet of our redemption fees . we are currently paying 35p in the £ . i will be glad to get to the end , sometimmes its still hard , car needs repairs but will have to wait, but there is light now at the end of the tunnel as we should be at the end by next summer . unless we come across the money tree in the garden , where we could end early . think its going to be to the bitter end for us !

[David Mond]

Is the 35p dividend based on paying in an equity release of £23,300 or 85% thereof? It may well be because of falling house values your equity is much less and you might be able to persuade creditors that this figure is not possible and reduce the dividend by proposing a variation. Have a chat with Melanie (as offered) or give me or Size5 a ring.