Hello to all, new to posting here but I've lurked for advice over the years. Please excuse the mega-tale below but I wanted to lay out all the facts - feel free to skip to the last paragraph.
HISTORY
We started our IVA in April 2009 with DFD; we have a 79,000 mortgage and two secured loans totalling about 23,000 at very low interest rates.
Our payments were £607 apart from some reduced payments in the middle at DFD's discretion due to the protocol applying to our IVA.
The first hiccup over the years was when DFD wrote to us wanting to change the terms and conditions, and giving us the option of voting yes or no. We voted no, returned the slip as requested (had we not returned the slip they would have assumed a "no" anyway). Guess what? They changed them anyway, held a variation meeting and informed Kingston County Court that we had consented to the change. Have two emails from DFD dated April and June this year to confirm that we immediately informed them the change was against our wishes, as we had clearly voted "no" but have yet to have a single word back regarding them reverting us.
Equity release - I supplied two examples of mortgage rejections last year but in May this year were instructed to contact the Select Partnership to seek release of the equity in order that a full and final offer could be made. The identified equity had gone up slightly from about £3800 to £5501 but that was to be expected. Select came up with a secured loan to cover the existing secured loan, fees and the £5501 over ELEVEN YEARS at £464 per month on top of my mortgage payments. The financial advisor from Select said he would not recommend this solution and I declined to proceed. He advised (and I thought) that an extension of 12 months would then follow instead to recover the £5501.
We were advised by DFD over the phone when making our regular payment (since May but can't remember when) that in failing to proceed with the secured loan, a breach had been lodged. I explained that the financial advisor himself could not recommed the solution, and DFD stated that an extension would be the alternative whci I was happy with and still would be.
Made our last payment at the start of this month (hurrah - it's been more than five years of hell), and was advised that an extension would probably follow. Lovely lady at DFD congratulated us on reaching the end of the line. i sat back and waited for the postman to deliver us a lovely letter from DFD regarding a twelve-month extension and finally things started to brighten up after more than five years of unrelenting misery.
Last week we received a notice of breach for declining the secured loan in May; I contacted DFD and
they insisted that I re-engage with Select or I would be in breach for failing to make my best endeavours which I think I can understand. DFD advised that alternatively if we could source the £5501 from a friend or family member that would satisfy the terms of the equity release or if an extension was authorised, it would simply be a matter of £5501 divided by twelve payments i.e. £458 a month. I therefore requested that we go down the extension route, but re-engaged with the Select Partnership as instructed. Their figures are about the same as they were in May i.e. £464 a month for the next eleven years on a variable interest rate (initially 14%) and with a couple of thousand in fees etc to cover the £5501 and the two secured loans I already have. This means that I would be paying back about £30,000 for the sake £5501.
My wife is now at retirement age, is very ill (aspirating pneumonia, chronic cluster headaches and is on morphine and oxygen) and has remained working only to pay off the IVA; the doctor has advised her to severley restrict her working hours. She could maybe manage another year at most on reduced hours to cover the extension payments which would be £150 a month less than we've been paying. As of next month she will be in receipt of her pension which is only about half of her salary and she would need to continue working part-time to cover the extension. My salary will be cut by £180-£250 a month some time after October 2015 so I want it concluded by then, as we are really going to struggle for the next eleven years.
I have literally begged DFD over the last week to sanction the extension; bless them, the advisors obviously can't promise that and have said that any extension has to be authorised via a variation meeting with the creditors and could take six weeks to arrange. In the mean time we are to continue to engage with Select (possibly incurring several thousands of pounds in fees and costs) and to continue making monthly payments as that would reduce the balance of the £5501; I'm ok with this last bit although they haven't said how much....
IMPORTANT BIT
Since April I have repeatedly asked DFD to revert us back to our original terms and conditions on the phone, and like I said they have confirmed this request via email, but this has not been done. It has now become urgent as I have actually just managed to finally understand the original equity release clause and I can see why they might have wanted to change it.
The original clause stated inter alia that any equity release is to come via a remortage, and makes no mention whatsoever of secured loans. It states that any extension to the IVA is at the sole discretion of the supervisor, and makes no mention of a variation meeting other than to say that the supervisor's discretion overrides any requirement for a variation and that the extension is in lieu of of a remortgage.
I've swallowed my pride (not much left after being in an IVA for over five years, I can assure you!) and asked my brother in America and a friend over here if they could lend us the money. I am truly desperate, I haven't slept for three night, my wife is beside herself with worry that that we might be forced into taking on a further eleven years of payments that we could not afford to pay after October next year.
So, the purpose of all this is to ask these questions.
How do I, or even can I force DFD to change me back to my original terms and conditions?
Is there a legal difference between a mortgage and a secured loan and am I right in thinking that I cannot be compelled to take a secured loan if my IVA agreement specifically states that equity must be released via a mortgage only?
Does the decision regarding an extension lie with the supervisor, as is my understanding?
I seem to remember reading somewhere that any payments regarding equity release are limited to no more than 50% of my IVA contributions which would be £304, way below the £464 quoted. Is this true?
Finally, has anyone ever spoken directly to a DFD supervisor and would it make a difference if I did?
Thanks for bearing with me through this; I don't want to bash DFD I just want this nightmare to end.
