I am concerned that the 2014 IVA policy refers to either re-mortgage or a secure loan

[Dave.c]

I am concerned that the 2014 IVA policy section 9.2 refers to either re-mortgage or a secure loan. I have heard a few people pushed down the route of secure loan for several more years at interest rates over 10%...

[Foggy]

This is a possibility, within the financial caps set by the protocol. If you are not yet in an IVA you could have a word with a couple of companies who do not use the 2014 protocol.

[mole]

The biggest concern I would have now starting an IVA is the starting to boom property market. Luckily for me the last 5 years prices have been static.

Property owners now starting an IVA often have no equity as this has already been used to try and satisfy debts. They can easily look and think equity release will not apply to me. However, if you have £5000 equity on a £150,000 house, by the time you come to equity release with just a 5% per annum house price rise, you will have over £47.000 equity.

Companies will be all over you for a share of this, especially as they can "construct" a secured loan to fir into the affordability criteria as they see fit.

[baldy]

Its not gonna be easy for people with companys changing the equity release clause and pushing for the secured loan option.

Unless your going into the IVA already with a secured loan.

IF people decided to go down the bankrupt route is it a 100% they would lose there house?

We did the IVA route purely to protect our house.

Perhaps the Banks should have been made to sell their propertys to pay off their huge debts that they run up?

I think you need to check exactly how much you would have to borrow with the secured loan and for how long etc before signing.

Baldy

[bridgey]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by mole

The biggest concern I would have now starting an IVA is the starting to boom property market. Luckily for me the last 5 years prices have been static.

Property owners now starting an IVA often have no equity as this has already been used to try and satisfy debts. They can easily look and think equity release will not apply to me. However, if you have £5000 equity on a £150,000 house, by the time you come to equity release with just a 5% per annum house price rise, you will have over £47.000 equity.

Companies will be all over you for a share of this, especially as they can "construct" a secured loan to fir into the affordability criteria as they see fit.

I too sympathise for those starting out NOW and have the new policy wording, as it seems that it states Remortgage or Secured Loan... whereas those with previous wording it just stipulates remortgage...

So like myself, we're probably going to have 20/25k equity in the house, but the inability to actually get our hands on it by way of remortgage, so another year beckons.... which is fine by me, as ALL of the equity will be ours.