www.iva.co.uk

We had an IVA cleared over 2 years ago but it has killed us as I feel we were mis sold this IVA we had to remorgage our house after 4 years this was not made clear to us plus we has to re morgage for the full amount owed £29000 even thought we paid over £2000 costs and £300 per month for the four years. We were told at the beginning that we paid £300 a month and after 60 months it was over. Then after 4 years we had to remorgage that was a shock and now we have a much bigger morgage and 10 extra years to pay.
is this right?
is there someone who will loook at this for us?

Your help will be appreciated

hi val and welcome
most ivas have a 4th year equity release clause but was this not explained/in your iva proposal ?
are you able to say what company you used ?

If the fourth year modification was proposed by creditors it must have been included in the chairman's report which you would have had to sign. It would be difficult to prove that it was not explained to you given the time lag since the time of the original meeting and also since the IVA was completed.

I would check the exact wording in your proposal.
If there was an equity release clause, it will be in there.
It's normal to be expected to release equity in the 4th year. Thats why it's important to properly read the proposal and have all things you are unlear about, explained fully.

Do all IVAS have one of the equity clauses?

No. Some proposals have it put in as standard but others do not. Sometimes creditors propose the modification and other times they do not. Each case is individual and depending on the circumstances equity does not have to be offered.

Check your proposals and Chairman's Report and read the exact wording, but bearing in mind that you have now completed, there won't be a lot that you can do.
Every case is different and many creditors view the equity clause differently also.

I assume that when you borrowed the money it was with the intention to pay it back in full, so perhaps the IVA was not so bad after all. Did you feel it was the right thing to do at the time, and why agree to the remortgage provisions initially if you were concerned about having a higher mortgage after it had concluded?

Are there any creditors who do not impose this as a rule, or is it really down to the individual case?

It is a clause in almost all IVA's now, as long as you own your own house, obviously!