font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Steve.dw
My IP Kingsgate have got together with Select Partnership and offered me a secured loan of £7,750 plus charges £1992.50 at a monthly payment of £122.63 over 15 years
So you repay almost 22k. Shocking. What are the charges for?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I have just had a call from A very nice chap called Ian from iva.org (I know this is another site but needed all information I could get, I was panicing) and he talked me through everything I should know and where to look if I require any other information.
I am now in a better position than the other day and look forward to my telephone call to the IP on Tuesday stating I do not have to apply for the secured loan.
I would like to thank everyone who has replied to my post any helped me through the weekend and would recommend this site to anyone who is after information.
It was made up of nearly £2000 to inc broker fees,completion fee and also TT fee.
Has with my last reply I have been told and now checked, they can not force me into getting this as is goes beyond the time scale of my outstanding mortgage.
All said and done after going through this I need to get my house revalued however on the government web site my house would go for alot less than they stated. If all goes to plan with all the information I have taken in, in the last few days I still will have only 2 more payments. However I will be prepared to extend the iva for another 12 months.
There is a danger that you could be forced to remortgage and lose your tracker deal. It is all very well saying mortgages are not available for people in IVAs but that is untrue and indeed I have been told that mortgages will be available at 7% by the summer so maybe a small secured loan will be cheaper!
As long as the cheaper overall option is allowed to be taken then fair enough but you cant have goalposts moved without the impact on the client being considered.
I'd be very caeful about going into an iva. Moreso now than maybe 6 years ago.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
To answer your question, When I went through all my paperwork with Ian, he stated that this is covered under the 2008 iva protocol and that I can not be forced into a secured loan and that under home equity section 9.2
the remortgage term does not exceed beyond the existing mortgage deal. They wanted me to take out this loan over 15 years however my mortgage finishes in just over 4 years and the secured loan on the property finishes in 8 years.
I have been going through all my paperwork over the weekend and in the proposal it states that in month 54 I will release equity of £1,560.00, not estimated but that amount.
Is this an amount to be kept too, as it is in my proposal.
[?]
They are as bound by your proposal as you are and can only enforce what is agreed to in that proposal. I would be grateful if you could let us know what Kingsgate say when you present them with this counter arguement.
Good luck with it
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Michael, as Mole has alluded to, obviously considering the "affordability" factor (remortgage should not equate to more than current mortgage PLUS no more than 50% of IVA payment) at 7% then what would happen in the event that a remortgage was offered, however, due to the penal interest rate the payments exceeded the "affordability" criteria as laid down in the IVA protocol?
Would an IVA client having the equity clause be within their right not to proceed with the remortage offer in this instance and 12 month extension to IVA applied?
OR
Would he/she have to proceed with the given offer?
OR
Would the IVA client be advised to seek a smaller offer in order not to exceed the "affordability" criteria?
Your advice or that of other IP's would be appreciated.
Last edited by Pennyless on Tue May 07, 2013 8:06 am, edited 1 time in total.
I came into this world with nothing and still have most of it left!
I am not sure what would happen and protocol does not seem totally clear. For example, extending the term of the mortgage would improve affordability so could an IP demand this under protocol? Could the IP demand that the client goes interest only [if this option was available] but again the figures could be manipulated to improve affordability?
Personally, I feel the secured loan option is reasonable where it fits the spirit of the proposal i.e. the payments cannot exceed 50% of the IVA payments and creditors get their equity within the original five year deal. It is clearer and simpler than guesswork on remortgages.
It should be very concerning for many people starting an IVA if remortgaging suddenly becomes a reality.
Whether through their own ignorance or through an IP company 'spinning' a story, most people believe it will be impossible to re-mortgage and that an extra 12 months is the 'norm'.
People forced off their current 2-3% mortgage products and forced into long term 7%+ sub-prime loans will rightly question if the IVA route was right for them. Even possibly a mis-selling matter for FCA/FOS.
I too am on tracker (+0.65%) above base rate. If I was forced to remortgage at 7% even without any additional lending, that would be an monthly increase of £500 for the next 15 years. (Over £90,000 extra in mortgage payments, and far greater than my original debt!!!).
Not a very nice prospect.
Last edited by mole on Tue May 07, 2013 1:56 pm, edited 1 time in total.
IVAproviders definitely shouldn't be telling people they won't be able to remortgage...as long as it's in the proposal it's a real possibility however unlikely over the past couple of years. But if re-mortgaging makes an IVA unpalatable there are other options.
