www.iva.co.uk

Decided to try and get out of my IVA any way that I can, i'm earning more now so with fee's added on i'll end up paying more than I originally owed!

I want to take a secured loan out against my home and make an offer. Can you tell me the name of a company who could provide such a loan to someone in an IVA?

Many thanks!

I would be very careful taking out a secured loan. Look at the terms of your proposal and any modifications made. You may be better off in the long term just seeing the VA through, even if it means an increase in contributions. liase with your IP for professional help. I personally wouldnt have a secured loan for love nor money!!!!!!!

You are highly unlikely to find any reputable company willing to lend you money, secured or otherwise.

I've already found a few online who say they can help, wanted to see if anyone else had any experience of one. If I can get one, i'm going for it. The downside of the IVA are just too constricting. I can't move house for years, not even a basic level of credit and I was in a much better position before. If I can settle now for around 60% of what I owe left, i'll be much better off long term!

The sorts of companies who may consider taking you on will probably charge very high interest rates and of course it all depends on how much equity there is in your property as well - don't forget that they will do their own valuation.

None of us like the restrictions placed on us in an IVA but we accept them to be able to pay back some (or all) of what we borrowed in a much shorter timescale than it would have been.

Fogot to say that as your IVA will remain on your credit files for the full six years, regardless of when you pay it off, you are still unlikely to be able to get much in the way of credit.

Never transfer unsecured debt into secured debt IMO.

Been there, done that. Never again.

I did that once - all it meant was that I got deeper in debt and still ran up the credit cards.

Always leave your debt unsecured if possible. Your home is at risk if you secure lending on it. Worse case scenario is you cannot afford your seciured payments and you may end up losing your home. Your credit file will be shot anyway if you're in a VA. Try and stick it out and do not secure any more lending on your house. It's too risky.

How long would the secured loan be for??Surely a 5/6 year IVA would be a quicker option. You say you are better off now and paying more into your IVA but you will never pay more than 100% plus fees, and then you will better off probably having equity in your property without any ties

My secured loan was over 10 years, and I'll still be paying it off when the IVA finishes.

Your right Jan. We are effectively paying to mortgages. You hear the stories about it being a cheap way to borrow etc. but at what cost?

When we downsized there was a big chunk of debt we needed to square up. So we opted for a secure loan.

Over the next few years our unsecured debt began to rise. And that is why we have just entered an IVA.

On the bright side, assuming our IVA runs for six years, we will only have 12 months left to pay the secured loan

I'm hoping my wife can work part time then.

I'll have about twelve months left as well. Mortgsge has a few more years after that though.

I would be very careful taking out a secured loan. Many companies are not registered with the FSA, indeed many individuals whom support Secured loans are unscrupulous loan sharks, so be careful.

I know of a very reputable company that will lend up to 70% LTV I could let you have the details of. If you have less equity that this, I think you will struggle to find a lender to help you whilst you are in the IVA.