NR Loan

[jaspersgirl2]

Hi wondered if anyone could help.

I am half way through IVA....have a Northern Rock Loan..was unsecured and they have now made it secured. Called debt recovery company to find out what was happening ...and they say it's been referred back to Northern Rock and as far as they are concerned the case is closed!! Called IP and she is gonna find out on Monday.

Just wanted to know if anyone had any idea what was going on with NR.

Jasp

[MelanieGiles]

Your IP will need to check the terms of the legal agreement with Northern Rock. If there is an "all monies" clause in the contract then they might be entitled to secure their debt, although I am suprised that this has happened half way through an IVA. If there is no provision, then they cannnot secure at this late stage.

[Viki.W]

Ooh what a pain Jaspersgirl, hope you get this sorted on Monday. X

[Adam Davies]

Hi
Interesting,but it should not affect your IVA payments.You can't pay the NR secured debt AND your IVA payments at this late stage.
Let us know what your IP says

[Soulgrowth]

Can they do that if it was included in the IVA?

Debbie

[Adam Davies]

Hi
I think they can secure their loan if something was written into the original loan agreement,but it can't affect the outcome of the IVA.
If the IVA fails then they have the security of the loan secured against the house rather than lost in possible bankruptcy
Regards

[jaspersgirl2]

Well I'm still waiting to here from IP after I advised her of the situation.

The last I knew is that NR sold the debt and it was in the hands of the debt collection agency.

It's all a bit odd as I took out the loan and it was alongside my mortgage at the time. When I couldn't afford the repayments they managed to take out an charging order out just before the IVA was through.

My IP has been trying to sort it but NR still said it was a secured loan...so I know I have to pay this when I sell my house. It's just they don't seem to know where this loan is and I was hoping it had got lost!! But then £14k is a lot to lose!!!!!! Wishful thinking eh?

They're not hounding me for it obviously.....as the interest will still be mounting. For a couple of yrs I thought it was part of my IVA but apparently it's not.

If and its a big IF...I sell my house which is currently on the market...I've got about £85k to repay my mortgage...NR loan of £14k and then my creditors apparently want aboout £24k....at the min I've got about £52k equity in my property so it's not impossible to move and buy a new place..I just have less of a deposit..unfortunately.

If I wait until the 4th yr I will have to remortgage on a house that I don't really want to live in ...as I wanted to buy somewhere with my partner nearer to work....but if I do then the figures still work..mite be a little less equity if house prices tumble..but it means NR get their £...and I'm left with a higher mortgage payment but at least the IVA payment will go....as in I pay via a remortgage if I understand this 4th yr clause correctly!

[Viki.W]

Hey jaspersgirl, sorry, I can't help you but just wanted to know that I'm thinking of you. All sounds like a bit of a nightmare to me. Let us all know what your IP says, good luck in getting this sorted. X