www.iva.co.uk

Hi there,

I still owe about 16k on my IVA, but I have been thinking today about taking out a secured loan on my home and paying it all off in one go.

I'd be paying roughly the same amount each month that I am now on the loan.

Just wondering if anyone has done this? Is it a viable option? Does anyone know of a finance company who would do this?

Hi,

As your credit rating will be shot, I doubt you would get a loan at all.

One of the experts will be along to help soon.

Hi
Is there an equity release clause in your IVA ?
Regards

Hi Andy,

Yes there is an equity release clause. I've found a few places on the net who say that they can offer secured loans to people with bad credit, or in IVA's. As the loan is secured, I'm not sure if the credit rating means that much.

If one of these places is willing to give me a secured loan, would that be acceptable to pay off the IVA?

You say you'd be better off but you arent paying any interest on your IVA. If and its a massive IF,someone could give you a loan,I would imagine their rates would be extortionate!!

Even secured loans require some credit worthyness and right now if you have an IVA on file you would be as welcome as a fart in a spacesuit!!(or a hedgehog in a condom factory)

Paul

Hi
Chat with your IP but just be careful as you could be landed with a very long term cost, if payments are the same as your IVA I can't see any reason to settle your IVA early ?
Regards

I agree - I imagine repayments would be over a much longer period, so would cost you more in the long run.

Stick with the IVA if is working for you.

I think that you will find it very difficult to get a secured loan if you are currently in an IVA, but no harm in trying to see how much you could raise and therefore how much you could offer to creditors.

Do remember that the secured loan repayments will last far longer than the end of the IVA - so you might be better off in the long run plumping to stay and finish off the arrangement.