IP is saying they will write to my creditors unless I reconsider taking on a loan in lieu of equity

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Donski33

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Post by Donski33 » Mon Aug 22, 2016 9:20 pm
I am in month 53 of my iva and ip is telling me I've £17000 equity - I tried to get a remortgage by 3 different lender who all declined! Now ip saying they have specialist broker who may lend! Initially I said no but now they are saying they will write to my creditors unless I reconsider! Has anyone had this experience??
 
 

hubert

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Post by hubert » Mon Aug 22, 2016 9:45 pm
I suspect they are referring to a secured loan rather than a re-mortgage.

In practice, I don't think anyone can re-mortgage ever whilst in an IVA.

Check your terms carefully, see if it mentions a secured loan as well as re-mortgage. I think the majority mention only a re-mortgage. A secured loan is NOT the same thing as a mortgage and don't let anyone tell you different.
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Foggy

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Post by Foggy » Mon Aug 22, 2016 10:00 pm
All depends upon the wording in your proposal. If it says remortgage or extension, those are the options. As Hubert says a secured loan is not the same thing as a remortgage. However, some wordings refer to secured lending or "third party funds" --- and it is this "third party" bit that is open to interpretation. Some IP's are taking the line that this includes a secured loan.

My arguement is that, if secured lending WAS intended then there would have been no need to specifically introduce it in the 2014 Protocols --- the fact that it WAS specifically introduced points to the fact that it wasn't previously intended.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
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Donski33

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Post by Donski33 » Mon Aug 22, 2016 10:18 pm
It does mention 3rd party! Is it best to go along with there broker because it also mentioned that if repayments are more than 50% of my monthly payments it is invalid. I don't think I will get a remortgage for £17000 for less than £109 per month over 15 years (or can they make you pay longer than your current mortgage term) ! Stressed!!!
 
 

kallis3

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Post by kallis3 » Tue Aug 23, 2016 8:25 am
There is no way you will get a remortgage so see how the figures pan out for the secured loan.
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Michael Peoples

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Post by Michael Peoples » Tue Aug 23, 2016 9:27 am
Have a word with Shaun Vickery of Select who posts here as his firm are specialists in secured loans for those in IVAs. You are correct that you can only pay back the borrowing at a maximum of 50% of the IVA payment so it may be that you can only raise a much smaller amount than the full £17k. If this is the case creditors will usually happily accept this and your IVA can close down.
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Lisa Thomas

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Post by Lisa Thomas » Tue Aug 23, 2016 10:54 am
3rd party is not the same as a secured loan. Check the wording of your proposals carefully.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Foggy

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Post by Foggy » Tue Aug 23, 2016 11:00 am
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas

3rd party is not the same as a secured loan. Check the wording of your proposals carefully.
I agree, Lisa, however there have been instances of some IP's thinking otherwise ! As a matter of course, in such circumstances, I would challenge it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Donski33

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Post by Donski33 » Tue Aug 23, 2016 11:26 am
Thank you for all the advise,
I am right now in the middle of an email to IP telling them that i am happy for them to write the letter. I have asked them to ask for the 12 month extension on the payments.i have asked them to advise the creditors that i have explored all avenues set out in the IVA Protocol which has shown that i cannot remortgage.
I have also asked for evidence that their request to use a broker suggested by them is within my terms.
How does all this sound??
Do i need to include anything else??
 
 

Lisa Thomas

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Post by Lisa Thomas » Tue Aug 23, 2016 11:47 am
Yes sounds good to me.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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