Get expert opinion. This is the place for new questions to be posted.
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kirstie
- Posts: 3
- Joined: Mon Sep 15, 2014 4:29 pm
- Location: United Kingdom
Hi, I am in the last 6 months of my IVA, I have just sent "Creditfix" my mortgage redemption certificate, I spoke to them and asked how much I owe,they told me after my final payment in Jan I will owe £1865.24.
I received a letter today telling me I have £24,40653 equity, and they are going to extend my arrangement by 12 months, which means I will be paying back £3732.00, double what they told me I owe? I tried speaking to them and they told me that this is quite normal, happens all the time.
I don't understand how I owe more?
Hopefully you could explain it to me.
Thankyou
kirstie
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Shining
- Posts: 27019
- Joined: Thu Sep 20, 2007 8:57 am
- Location:
Hi and welcome to the forum. The extra 12 monthly payments will be in lieu of equity as within your proposal you may have an equity clause. Do have a read and see what it says as they can differ. But the 12 monthly payments may be less than the equity they would require most probably but it's impossible to remortgage when in an IVA.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
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kirstie
- Posts: 3
- Joined: Mon Sep 15, 2014 4:29 pm
- Location: United Kingdom
Thanks for the reply.
Maybe I'm being a bit stupid? trying to read the information I have got is like reading Chinese! When I spoke to Credit Fix, she said I originally owed 19'395.00 which went down to 18'660. 54 month payments = 16'794, so what I am not understanding is, paying 311 per month until Jan 1'244 which to me means I owe less than 2000?
I'm really sorry to sound so dumb, I was just seeing the light at the end of the tunnel and now its been moved
kirstie
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Adam Davies
- Posts: 14596
- Joined: Thu Mar 29, 2007 12:21 pm
- Location:
Hi and welcome
You have to factor in the fees involved with setting up and supervising an IVA so even with the extension it is unlikely that your creditors will receive all their money back
A twelve month extension is better than a remortgage or having to take a secured loan
Regards
Andam Davies
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kirstie
- Posts: 3
- Joined: Mon Sep 15, 2014 4:29 pm
- Location: United Kingdom
Thanks very much,
I understand about the fees, I think the most frustrating thing for me, is the lack of communication and the legal jargon used in any correspondence I have received, which I can't understand.
Thanks again, like I said, I saw a light started planning things, only to have to wait another year,
Theres one thing for sure, I'm a lot better with money now!!
kirstie
