www.iva.co.uk

4th Year Modification -

I have posted on here several times. I am in the 4th year and have a 4th year remortgage modification made by creditors. I have obtained a quote from MBS which says they will lend up to 50% of the property value, basically realising around 2000 into the VA. Based on advice taken and with the help of a third party, I put forward a variation of £7000 as a F&F. This was rejected on the basis that the optimum return would be to maintain payments and add the £2000. totaling £8000. THis was at the creditors prefered option. My IP suggested that this needs to again be put forward as a variation. This was again rejected. Just yesterday, my IP advised me of an pilot scheme from someone he knows who will lend upto 70% ltv as a secured loan with a mortage. I am not happy. Can anyone advise as to do I need to go down the second charge route. I feel I am being pushed into a corner and am concerned that if I cant get a second remortgage offer I could be potentially in breach of the modification and the creditors could assume something else. Whilst I understand that it is the supervisors job to supervise within the terms of the modification, I am somewhat sceptical. Expert advise would be good from a third party if possible. Many thanks

Hi, I'll keep this bumped up for an expert opinion.

Did anyone ever suggest 12 more payments in lieu of equity release? x

My IP has not mentioned this yet

I'm not sure if this is a common practice maybe one our professionals can clarify but I know it's spoken about a lot in threads of equity release. x

When many IVAs were proposed a few years ago the equity was to be raised at 85% loan to value and in some cases a sale was included as an option. However, over the last few years as it has become impossible to raise equity, the extensions have been brought in.

I have to agree with your supervisor that if there is a secured loan available which you can afford, it is the best option for creditors. In two years you can remortgage the whole package to the high street when your credit file is clear and you will still be better off than an 85% loan to value remortgage which was probably agreed at the time of the original IVA.

A secured loan would put me a a worse position. The terms of the modification state remortgage. quite simply a secured loan with variable super high interest rate does not help me get out of debt but places me further. As we know, secured loan company are unscrupulous people, especially in this climate. I will probably end up loosing my family home to some shark!!!!!

I am not a financial adviser but I do know that a remortgage would mean shifting the complete amount owing to adverse rates whereas a secured loan only means a relatively small amount at high rates. This may equate to an overall saving depending on the amount of the mortgage balance.

In addition, the secured loan repayments should not exceed more than 50% of the IVA payments irrespective of the equity so affordability should not be an issue. Talk it over with your IP but I very much doubt if your position will be worsened.

Hi - is there anything in your equity clause which would suggest the secured loan monthly payments would be too expensive in relation to your monthly iva payments? xx

Heres what I am doing folks. Your advice is brill and having just spoke to one of your advisors, I will contact my IP direct and bypass his manager and find out what is happening.

Good luck xx

Let us know how you get on - hopefully you will be able to just add the extra 12 months.

No problem, I will let all know how I get on.