The irony about the APR is that the higher the rate the lower the amount you can borrow. If your loan repayments are capped at 50% of your IVA payments then the amount of equity that can be raised decreases with an increased APR.
We use some of protocol in our IVAs but we use the R3 standard terms and conditions which means statutory interest does usually apply. However our proposals specifically state that this part of the T&Cs is removed so our clients will not pay it.
We also do not mention secured loans in our proposals and still use remortgage but this does not mean that our clients cannot propose full and finals based on secured loans and the option is there should they wish.
I personally feel the secured loan option is a good thing for debtors and creditors alike provided it is properly explained and offered by a reputable firm such as Shaun Vickery's Select.
Longslog101 - thats why i had refused to sign up to the new terms initially. Having read the info leaflet from my provider, I decided that no matter how much you did under "Best Endeavours" as a creditor, I would insist on them looking in to the secured loan.
Now however, I have the letter stating that my equity release clause has been investigated and is now completed, with no further action to be taken.
So switching to the new T&Cs allows me to have the deed of assignment sorted allowing for quicker closure. (Still not sure why I had to switch for the last few months.)
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
