It depends on whether you want to retain the property or keep a good credit file. It also may depend on how the debts are split and the ownership of the property.
As Foggy says take some free advice befor eyou decide.
This just says that are to obtain a refinance up to 85% loan to value if possible and a secured loan is a tool which can be used. However, it actually clarifies other issues in that the mortgage term cannot be extended nor can it go past normal retirement age.
There have been some scare stories about the new protocol terms and conditions but they are not all bad. We use R3 standard terms and conditions anyway and have never used the protocol ones although we do include the better elements as standard within our proposals.
The credit file is pretty much shot anyway but it's the thought of coming off the property ladder and also we've still got to sell it, it could take a few months for that to happen
One of the key things to ascertain is whether you want to see your creditor repaid in full, or just brought under control. And how important is staying in that property to you?
I suggest a chat with an insolvency practitioner directly, who can help you to understand the advantages, disadvantages and implications of all options - and answer the many questions that you probably have in determining the right way forward.
If you can afford the mortgage payments on the property and you wish to stay there an IVA may well be the right option. Do not worry about protocol as very few IVAs lead to the sale of the property of additional unaffordable borrowings.
