I wanted to get some independent advice on a join loan me and my wife have together.
So we have a join loan with Hellidor Mortgages, which at the start of the IVA i believed was not in the agreement as the company could still chase my wife for the full amount of the debt.
After our first annual statement it would appear that this debt is part of the agreement, and therefore have received payments from the IVA pot - but we have also being paying them the original / normal monthly payments. Bonus is the balance is coming down quicker than expected
My questions relates to 2 aspects,
- Should the loan have been included originally
- My IVA company advise that Helidor should not be adding any interest to the outstanding debt, but as the BofE rate increases - so do our payments - is this correct - and should I be contacting Helidor to discuss what can be done. I guess hellidor are being treated more favourably compared to other companies and as i understand it - that is not correct.
Assuming this joint loan is unsecured it should have been included in the IVA. The lender will then get a dividend from the IVA and can also expect the usual repayments from the other borrower. When the IVA completes, you are absolved from it but the other borrower still has to keep paying until the loan is repaid in full.
I am unsure of the position regarding interest as each borrower has full responsibility for the whole loan ( not 50/50) so, in practice, the solvent borrower is still bound by the original terms --- so, while your dividend payments will remain based on the principal loan without added interest, the other party will be responsible for interest.
The lender is not being favoured in respect of its relationship with you --- you are only paying the dividend as agreed. The contractual relationship with the other borrower is outside of the IVA and they pursue that borrower independently of you.
Clear as mud, I am afraid. But I feel the IP is acting correctly, as is the lender.
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.