f.a.o experts,
i have already posted this question,however i,m still none the wiser.i took out an iva 5 years ago iam now at the release the equity in your house stage.debtfree direct have put me in touch with specialist lenders who they use.they offered to lend me the monet at 18.9per cent interest over 7 years the repayments are 410gbp per month i have been paying 404 on the iva this month is the final payment on the iva.as you can imagine i am staggered by their offer as its just not in any way affordable.do you have any ideas on this or will i have to accept that the iva will fail i turned 60 in july 2012.
many thanks
The answer should lie in your paperwork. What exactly it says regarding attempting to release equity and failure to do so. Often a remortgage is limited to something costing no more than 50 % of your current level of payment in the IVA so asking you to take on a secured loan at a level greater than your IVA payment is unacceptable and not what you agreed to I would imagine. At that point you could have done a 12 year debt management plan instead(probably for much less fees).
This is a worrying trend and we could do with some clarity from DFD on why they think they are acting properly in pushing clients out of unsecured debt and into secured debt.
What company is offering the loan???
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
While a secured loan is effectively releasing equity which is what is required this cannot just be achieved at any cost to the person in the IVA.
Nobody should be agreeing to an IVA nowadays that is sitting on decent equity unless they expect to be pushed down the secured loan at any costs route!! Its quite probably going to become the norm and anyone that has managed to simply extend payments by 12 months should maybe consider themselves lucky.
A costly secured loan is simply frying pan into fire especially given the high APR!!!
That said it may be more important to ensure there are no early settlement fees with these secured loans because you may be able to remortgage shortly after your IVA drops from your files and use that money to pay off the high APR secured loan.
Not ideal but then again people should enter IVA's with there eyes open as to what can be asked of them.
Pity it appears that goalposts can be moved so easily it would seem by iva firms.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Check your paperwork immediately. It looks like you are also with the same IVA company as Andy.tw who appear to be the only company pushing people to secured loan rather then remortgage.
If you paperwok states if you are unable to remortgage then an extension of 12 months can be enforced, then remortgage is what you should be applying for not a secured loan. If this is the same circumstances as Andy.TW I would urge you to read his post as there is a lot of good advice on that post on who to report DFD too and what other steps you can take to make sure you do not qualify for these enforced loans.
Quite a scandalous situation for you to be put in.
Would you have signed up to your IVA if you were aware this `loan to release equity` route would be a possibility rather than remortgage or twelve month extension if unable to remortgage?
I doubt it.
Another example of the extremely worrying trend of IP`s forcing people into lengthy extortionate secured loans to meet the equity release clause.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
It would be interesting to see what the regulators have to say, in reality maybe this is what needs to happen as this company do seem to be running away with themselves, doing what they want, how they want and without a care for anyone concerned except what they can obtain and knowingly know that they wouldn't be challanged.
Surely if the creditors had been approached then there should have been some previous communication regarding this, would this not amount to a variation at the very least for which you do have to give permission to happen.
DFD do really need to be explaining why they are doing things that other IVA suppliers are not and why!
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
We have got a IVA with DFD and its been written in to the iva that if we cant remortgage then we pay for a extra 12 months but as my O/H will be 60 when 5 years are up then any remortgage isnt to exceed pension age ..Or be more than the IVA payment ..So getting a loan would be totally out of the question..Getting a remortgage would also be out of the question ..I think he will be 61 by the time its all sorted..Guess its how its written into the original document but it doesnt sound very good offering people who are trying to get out of debt loans..
pollyann, I would refer the contents of this post to your IP and talk this through before signing anything. With it saying about 12 monthly payments then surely they wouldn't expect you to take a secured loan. However, clarify this with them.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
