I am in my final couple of months in my IVA. I am trying to remortgage to release equity as requested by my IP but having no luck. They have told me that I will have to go into year 6 instead of the equity release. I asked if it was possible to make an offer of a full and final payment equaling or more than my 12 months of payments but I have been told no and it's non negotiable. Is what I am being told correct and would my offer be seen as fair. Any help is greatly appreciated as being in the Iva is affecting my career prospects.
Also, my wife is in an Iva and has asked for a settlement figure. The figure is a little over £6000 including fee's (about half of this) but if she continues to pay until the end of year six she will only pay around £3000. I really don't understand the maths used here. Does this mean the last year is all going to the iva company and my creditors get nothing. I just don't understand.
Your firm is being a tad awkward. I would imagine the creditors would be happy with a lump sum to clear off the extra 12 months and cannot understand why your IP is objecting to this.
As for the wife --- if she asked for a settlement figure the IP is going to go as high as possible to recoup debt and fees. What she should have done, as in your case, was offered the remaining payments in a lump as a full and final offer.
You can still both make these offers -- it is for your creditors to decide NOT your IP !
Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy. I thought they were being unfair. We want to do the right thing and if we could release the equity we have more than enough to finish the iva tomorrow. I thought they were incorrect to say it's non negotiable.
It does seem odd that the IP will not look at accepting the equivalent amount of the extension payments. Ask them to call a variation and see what creditors want to do.
Do any forum members know of or can recommend a mortgage company of secured loan company that could help us release equity. Has anyone else had success in this area? I know it is much harder to obtain a mortgage these days but we are in a very strong position as we both work in the public sector (secure employment) and have a lot of equity to play with but just can't get to it?
Contact Shaun Vickery who posts here. They have a secured loan product for IVAs and hopefully can get you both out of the IVA. His details are in the experts section.
From what you say I don't see any reason why you shouldn't be able to make a 'Full and Final' offer to your creditors. You would need to satisfy both yours and your wife's at the same time in order to obtain the finance, which of course also depends on the equity in your property, your income etc. It definitely appears to be an option available to you though.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Thanks everyone. Shaun, I have submitted an enquiry at equity-online but I think it's a bit late in the day to get a reply. Over the next 12 months we would pay roughly £6150. Do you think a F&F payment of £10,000 would be a fair offer to make. Is frustrating that we just can't get this thing finished after all this time!
Sounds good and creditors do normally accept equity releases. I am sure Shaun and his team will be in touch Monday. Very best of luck and let us know how you get on.
Well now I am really confused..... And frustrated. I have spoken to a representative of equity online and they have put forward a solution to help us achieve an amount slightly less than the equity release value which you would think it's good news. We have also contemplated selling the house to pay it off and moving into rented accommodation. I have put both options to my IP and have been shot down again quote 'you are not allowed to sell the property without your supervisors consent as he has a restriction on your property. You are also not allowed to apply for a secured loan to offer as a full and final to your creditors as this is a breach of your IVA.
As I have previously stated we have to follow the procedure as per your proposal which states you must apply for a re-mortgage at a maximum 85% loan to value of the property and if the re-mortgages are rejected this will result in a 12 month extension of your IVA.'
Obviously I am only in the research phase with all of this and would have included my supervisor at all times.
Does this sound correct to you all as I am becoming really frustrated!
