font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
NickJohn. You would never qualify for a remortgage or a loan so an extension would be appropriate. Any remortgage or loan is only suitable for those with the equity and the means to repay.
I think that there is a fear that people will be made to remortgage or take a secured loan that they cannot afford to repayu when this would not be the case.
NED/CAB.
Thanks for your comments but I would not be posting on here if everyone agreed with my opinions as where would be the fun in that!
Hi Michael,
From the posts I have seen on the subject (granted as said by a previous post the ones seen may only be a one sided version of events) I was of the understanding that the only affordability criteria used was that the loan repayments must be no more than 50% of your current IVA payments, based on the online calculator I did a quick check with it showed that I past the affordability test as the re payments were less than half of what I am paying now.
I also have equity in my property which, based on 85% etc, will be around the £30k mark.
Given that some IP's may be channelling people to firms who specialise in loans to those in or had IVA's and given that the IP will be able to give a glowing testimony on your last 5 years of credit repayments then I would have thought they would have tried pushing me to a loan, even though I would hold out for the extension as that's what was agreed at the start.
PENNYLESS: You really do have the emphasis wrong. Many debtors don't want to extend the term of their IVA but I understand why it creates nervousness and will be a huge concern to some people. I spent a good deal of time composing my post in an effort to get the balance right but it seems I didn't succeed. Please, you really shouldn't assume that everyone involved is seeking to rip you off! You clearly wouldn't require our services and I appreciate that. We only assist debtors who wish to participate.
Nick John: In any event you would be unable to release 85% of the value of your property and so in similar circumstances, some debtors may look to make an offer in 'full and final' settlement of a considerably lower amount.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Shaun Vickery
Nick John: In any event you would be unable to release 85% of the value of your property and so in similar circumstances, some debtors may look to make an offer in 'full and final' settlement of a considerably lower amount.
Hi Shaun,
Sorry to sound dumb on this one Shaun but why would I not be asked to re mortgage or raise a loan given that I have equity within the property and any loan repayments would be less than half the IVA repayments.
Shaun quiet the contrary in fact....I dont believe in burning bridges as circumstances change and far from being "against" your services, I am sure in some circumstances you can offer valuable assistance dependant on individuals financial circumstances, however, I still remain curious as to how your services are aquired/referrels sought, as the last thing I want is to be "pushed" towards a lender of last resort, who as I have alluded to already would be able to quote any rate they deem neccessary....and I doubt that would be in the clients best interest.
Notwithstanding the aformentioned when I do come to month 54, I will certainly explore ALL avenues available with regards to my equity release clause but as I say I would like to be able to make an informed decision and at least retain the right to shop around, rather than being "steered".
Last edited by Pennyless on Thu May 09, 2013 6:19 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
Hi nickjohn. If I understand it right you could be unlikely to qualify based on your income. Any new loan would need to be affordable irrespective of the limitation regarding 50% of the IVA contribution. I hope that makes sense?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Hi Pennyless. Debtors are referred to us from a wide variety of sources, including mortgage brokers, IFA's, insolvency firms, internet searches, sites such as this, personal referrals and so on.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Shaun Vickery
Hi nickjohn. If I understand it right you could be unlikely to qualify based on your income. Any new loan would need to be affordable irrespective of the limitation regarding 50% of the IVA contribution. I hope that makes sense?
Hi, yes that makes sense. Thanks for the feedback.
Thanks for the quick reply Shaun....would you be able to disclose what percentage commission (if any) is on average available to Insolvency Firms for such referrels.
I came into this world with nothing and still have most of it left!
Pennyless: As a matter of policy I'm afraid I'm not authorised to discuss ANY commercial arrangements we have with ANY third parties but please don't read anything into that whatsoever.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Hmmm, interesting thread, what I find most disturbing is the fact that what was essentially unsecured debt which went into the iva in the first place, is being asked to be turned into secured debt to fulfil the terms of the iva, now through a remortgage I have no issue with, with a secured loan I do, partly because I have had secured loans in the past and the interest rate on them have only climbed and climbed, a normal mortgage tends to rise and fall in line with general interest rates whether they are linked to BOE or LIBOR.
If in the future we are saying that secured loans are going to be available for people in an iva, then it stands to reason that these are going to be available to people considering or heading towards a formal debt solution with a deteriorating credit rating anyway, what would then be the point in taking out an iva? You may aswell take out a secured loan on your equity and then use that to make your own settlement with your creditors whether that is in full repayment of debt or partial payment as a full and final ( which can be and has been negotiated successfully many times), many of us would have done this and not gone down the iva route if lending had been available to us, therefore making the services of an IP redundant.
So people with equity to protect will no longer need an iva as they will be able to access lending to sort out their own debt repayment plan.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem
Hmmm, interesting thread, what I find most disturbing is the fact that what was essentially unsecured debt which went into the iva in the first place, is being asked to be turned into secured debt to fulfil the terms of the iva, now through a remortgage I have no issue with, with a secured loan I do, partly because I have had secured loans in the past and the interest rate on them have only climbed and climbed, a normal mortgage tends to rise and fall in line with general interest rates whether they are linked to BOE or LIBOR.
If in the future we are saying that secured loans are going to be available for people in an iva, then it stands to reason that these are going to be available to people considering or heading towards a formal debt solution with a deteriorating credit rating anyway, what would then be the point in taking out an iva? You may aswell take out a secured loan on your equity and then use that to make your own settlement with your creditors whether that is in full repayment of debt or partial payment as a full and final ( which can be and has been negotiated successfully many times), many of us would have done this and not gone down the iva route if lending had been available to us, therefore making the services of an IP redundant.
So people with equity to protect will no longer need an iva as they will be able to access lending to sort out their own debt repayment plan.
People without equity to protect will go bankrupt
We don't need IP's or Ivas anymore
An interesting point, in addition if you take out a secured loan to give the F&F at the onset then your credit rating will not suffer either so no more waiting six years to clear you credit file..
