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Is this a normal situation for remortgage clause? I've been put In touch with the select partnership through dfd who are suggesting a secured loan as its cheaper than a remortgage. I'm in a single iva with joint home ownership and they are stating my husband needs to co sign the loan and I need to pay setup fees to get a lower interest rate loan. The equity clause in my agreement was for a remortgage not a secured loan. What happens if my husband doesn't agree to Co sign. They have said I can't secure credit alone against a jointly owned property. Agghhhh

A secured loan is not a remortgage, and I question how it can be cheaper.

Sorry for the late response, The interest rate on the loan will be 11.9% which, for an IVA client is very good. The loan does not have any early repayment charges with the exception of a £195 deeds release fee this means that if you can=me into a windfall, extra funds or inheritance then you could clear it off early, so over 15 years it would be £213.44 per month, over 7 years it will be £314.67
per month. A remortgage over 20 years would be at a rate of 8.5% costing £806.03 per month.

On the face of it the loan beats the remortgage -- BUT --- what does the proposal say is the alternative to a remortgage if it cannot be effected ? Most proposals offer a 12 month extension, which is probably ( depending upon your normal IVA repayment amount) cheaper than either the loan or the remortgage!

HI Foggy,

The proposal states remortgage, if it can't be agreed then a 12 month extention.

I'm worried about not agreeing to the loan, and my partner not agreeing to a remortgage then failing the agreement and loosing my home.

I agree with Foggy, check the proposal thoroughly and challenge the secured loan if it's not the route you want to take unless specifically stated in the proposal

My repayment amount is £521 per month - it started off at £280 so I'm paying much more than the original garred 37p per pound

They cannot force a loan on you -- they can only act as per the agreement. You need to attempt to remortgage and get refusals in writing -- if this fails ( as it usually does at the moment) then a 12 month extension is provided for in the agreement and the property is excluded from the IVA.

Could I get accepted for a remortgage and decline then go with the loan option?

Can I persue a remortgage witout my partner agreeing?

No -- you need to be refused by the lender. Declining an offer is not acceptable.

A remortgage will need your partner's agreement as co-owner of the pledged asset ( the house), as will a secured loan.

A 12 month extension is the logical way forward and is as per your agreement.

Can I request the 12 month extention?

I'm confused, Can my partner agree to me taking the remortgage out if he doesn't want to do this himself?

Ie can we retain the current outstanding debt jointly and I remortagge my equity share alone?

If your proposal says a remortgage I would push for this. However on the other hand if your remortgage figures are right then I wouldn't! What have your IP said would happen if you could remo but you didn't want to because of the high rate?
The loan looks attractive compared to the remortgage but its got to be right for you.
Tough decision. Good luck.

How much is your current mortgage payment, and when is your current mortgage due to be paid off?

Hi Melanie,

its £521 with 14 years remaining. Sorry about the different user names I'm having problems with site password retreival. Its honneyj.

my husband really doesn't want to do anything with mortgage and would reluctantly go ahead with the secured loan option although very warily. In my mental state at the time I really can't recal if he signed any papers to agree to this, Although he did sign a form to state we wouldn't sell in 5 year period. He was so angry at time he wouldn't get involved at all.

I would try and get two re-mortgage refusals.
Then tell your IVA company that it is not possable to re-mortgage.

And then under the terms that you have signed with them you would then do a extra 12 payments instead.

And they cannot touch your house.

Dont be pushed into somthing that you clearly do not have to do.

Even after meeting all your obligations some IVA companys still want their pound of flesh.

IF you have signed to take a secured loan out or re-finance because you cannot re-mortgage then i do understand why they suggest that.

In the future i think IVA's will have that written in, that at the last year you will be required to re-finance some equity in some shape or another.

DO NOT agree to do something that you have NOT signed up to do and are not happy doing. ( Stick to your guns)

Best of Luck.

Baldy.