Hello. We submitted declined mortgage applications to pay plan over a month ago now. We tried to apply over the phone but companies said they do not send letters if you are declined. We got the idea off here to get screenshots of our web applications. These contain reference numbers. Hubby is in the IVA but I'm not. I was not happy with having 2 refused credit checks against name but it's part of the process so I went ahead.
Anyhow got a call today to say they will not accept screenshots. I explained that the letter we received just said we need to provide proof we have applied. This was proof as far I was concerned. They then said we need to make you an appointment.to speak with a mortgage team called Reach who could help. I refused this due to the fact I already had 2 recent credit checks and certainly didn't see the point of adding more! I told them I had contacted other lenders over the phone but they don't send refusal letters in the post. While I was waiting for a call back from them we checked and found out reach is actually pay plan themselves. I am not happy that they are just trying to get us to use their own brokers. Surely the information we have provided is enough? They are continuing the process and forwarding my queries onto the official iva people who make the decision. In my opinion They shouldn't be pushing us to use them to get further into debt. We already have a secured loan that we need to pay off.
Last edited by In_deep on Wed May 13, 2015 8:53 pm, edited 1 time in total.
Reach, I imagine will be able to assist by providing a secured loan to cover the equity release. Your proposal, no doubt, says remortgage ( which is not the same as a secured loan ). They cannot make you take out a secured loan.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
1) are you sure you have equity to pay? Get two or three 'forced sale' valuations from estate agents - don't let the IVA co. use 'drive-by' figures.
2) If you have equity, make sure it's been calculated properly in line with the 2010 protocol (I'd imagine this is the one you're on if you're coming to the end of an IVA now - check your proposal document). It should be 85% of the forced sale value (given by the estate agent) minus the outstanding mortgage. Also, if your husband is the only one in the IVA, it's my understanding that they can only take half of the equity figure as 'his' (the other half being 'yours' and not subject to any IVA) and then apply the £5k clause to it.
I would very much check first that you don't actually need to make any additional payments before anything else.
Last edited by thisusernameistaken on Wed May 13, 2015 10:20 pm, edited 1 time in total.
The 2008 protocol states that an attempt must be made to release equity and if a remortgage is not possible then the IVA is to be extended.
It also states that the debtor is to be advised to seek the advice of an idependent adviser and as far as I can see there is no mention of getting two refusals from High Street lenders.
Any independent financial adviser would be able to tell you that a remortgage is not an option and this should be sufficient unless there are modifications or other wording in the proposal that I am not aware of.
The relevant paragraphs are below.
9.1 Six months prior to the expiry of the IVA there should be an attempt to release home equity (this would normally be after month 54, unless the IVA has been extended for any reason). However, where the debtor is unable to obtain a re-mortgage, the IVA should instead be extended by up to 12 months.
9.7 At the time the debtor is asked to release the equity in their property, the Supervisor or a suitable member of his/her staff, must advise them that they should seek advice from an independent financial adviser, such advice to include the most appropriate mortgage vehicle and the length of the proposed repayment term.
It seems totally pointless [and not even a necessary requirement] to further damage your credit file making multiple applications for mortgages that you will not get. There is a serious danger that some people will find their credit files marked with CIFAS warnings as a result of these attempts.
Thanks Michael, will have to see what happens now, I assume the 12 month extension. Will check my credit records at some stage and see how hubbys iva has affected me.
