www.iva.co.uk

Hi all

I need some advice please?

I had total debts of £59,
The iva was accepted as payback of 50p in the pound also equity release of £15,000, so in total including Ip fees approx £40,000 to be paid back.

I have paid 45 payments of £427 = £19,215.

I may be able to borrow some money for

I have a 5 yr proposal of 427.00 a month

I may be able to borrow money for f&f but haven't a clue how much to propose, e appreciated) also can somebody please clarify for me is it correct when you release the equity for payback you can only remortgage for half the cost of the iva eg...£427.00 payback for iva each month release equity mortgage payback £213.00 each month?

Hi there and welcome to the forum

The only person who can accurately work out a settlement figure is your IP - have you approached them for this yet?

Could you post your actual equity release clause from either your IVA proposal or your Chairman's Report so I can advise further, and what is the current value of your property and the amount you owe to the mortgage company? Is the property jointly owned?

Hi Melanie

My equity release is approx £15000,

When i started the iva i had a mortgage of £68000, and the value was £89000, also yes it is a joint mortgage with my husband and it is also a joint iva, sorry i should of mentioned that earlier!.

What are the current figures please, and can you post the clause so I can advise properly.

Hi Melanie

Sorry i am a little unsure as to what post the clause means and the current figures, i am not
normally this thick.

Do you mean this information

DEBTS 59,239

Voluntary payments £25,620
Equity release £15,161
=40,781

FEES =11,075
Available for creditors =29,706
Dividend to creditors =00.50.15

No - please post the bit in the proposal which means that you have to raise equity in your property.

Hi Melanie

This is the only mention of equity release in the proposal.


It says, we recognise that creditors view our home as a valuable asset. We therefore propose to make a payment of £15,161 into the arrangement in satisfaction of any claim by the supervisor or creditors to this equity. This payment can be made by a third party, raised by way of remortgage or by any other suitable means. If necessary we will make payment by way of continuing instalments after the fifth anniversary of the arrangement and the duration can be extended by up to 12 months for this purpose.

This is a very inflexible proposal term, and one which commits you to a sum of money regardless of the value of the equity in your home or your affordability to raise that money.

How was this explained to you by your IP firm and did the IP meet with you personally to explain how your home might be affected? And how they think that 12 additional payments of £427 addresses £15,161 beggars belief - I am suprised that creditors accepted this particular part of the offer.

Could you also confirm what you believe your property is worth now, together with the amount you currently owe on the mortgage. And take a look at your Chairman's Report of the creditors meeting to see if there are any modifications which may have overturned this one.

Hi Melanie

According to Zoopla the property today is valued at £91,000, and the current mortgage owed is £60,000, also i do not have nor have ever had a report regarding any modifications, as i said earlier with regards to the equity after reading all my paperwork that is the only paragraph that mentions equity release.

Hi Melanie

Also with regard to my IP explaining equity release to me - he didnt--and nobody else ever has- when i did mention at the beginning of the iva we were told not to worry this can be dealt with later on, i have recently telephoned them regarding equity release as my mortgage is with Northern Rock and with all the problems they have been having i asked if Northern Rock would not allow additional borrowing where would i stand (although i have never missed a mortgage payment in 10 years)and i also stated if i did get additional borrowing i did not want to extend my mortgage over the current time left of 15 years-and would i have to? depending on how much they would want back), again they said they didnt know, they did say they would get somebody from their mortgage dept to call me back - so far they havent-three months later am still waiting, i found more information on this forum, cant believe nearly 4 years into an iva and only recently come across this sight.

I think that the first thing you need to do is to find out whether Northern Rock will lend you any more money. In today's property climate, it is unlikely that anyone else will to be frank.

I find it difficult to understand why your IP would not have clearly explained the effects and implications of having to raise money against your main asset and your home. Which firm are you with?

Hi Melanie

I am with Freeman Jones in Manchester.

What do you mean by effects and implications?

Do you know what will happen if Northern Rock would not allow additional borrowing for the equity clause?

Thank you for taking the time to help me with this, it is very much appreciated, it seems stupid that i am paying IP fees when you are taking the time to help me free of charge.

Effects and implications are the issues which may involve the use of your property in this IVA, and how you are to raise the money.

Let's see if Northern Rock will provide you further funding before discussing what will happen if they don't. And don't worry about asking me questions - I will help where I can, but nothing can substitute the support you ought to be getting from your own IP.

Hi

I will speak to Northern Rock asap and will update with any information.

Once again thank you.

Regretably Northern Rock are not, as far as I am aware lending any new money - perhaps you should speak to a mortgage broker or ask your Supervisor (IP) if they know anyone.