www.iva.co.uk

i have a six year iva with 9 months added for some ppi recovery. I have 11 months to go now. The question is regards house equity. The house i figure to be worth 140,000. The outstanding mortgage is 104,000, and have a secured loan of 26,000. So based on 85% LTV i calculate i have no equity to be released. I recently signed the new 2014 iva version as well. Am i correct in thinking i have no equity and therefore will not have to re-mortgage, get a secured loan or pay a further 12 months. Just to add the reason i was told in the beginning that i had a 6 year iva and not 5 year was because the creditors thought there would be no equity at the end. Your help/guidance would be much appreciated. Chris

Hi just to add i have also had 3 extra months due to payment breaks so will be 7 years in total. Is there a maximum amount of time to be still paying?

Hi. As you know 5 years is the norm, which is sometimes extended to 6 at the outset by creditors ( mainly NRAM). This, in turn, can be extended by 12 months for equity issues.

I would have argued that equity had already been addressed by the original extension (if that is what it was for)and that a further extension in this regard was not agreed.

I do not understand why you have an extension regarding PPI issues -- has your IP explained exactly what issues ?

Now, unfortunately your original agreement has now been radically altered by your signing up to the 2014 protocol, so, depending upon what, exactly, you have now agreed to, all could change.

An IVA has no time limit, other than that which was agreed in its terms.

Hi Foggy thanks for your reply. Regarding the PPI i received money from my secured loan which at the time spent as i thought it was not included in iva. Once i realized it was i offered to extend by 9 months to pay this into the iva.

My main issue is the equity. By signing the 2014 version i believe this speeds up completion due to PPI claims. However i realize there is the part about secured loans for equity release, but surely if i have no equity based on the 85% LTV then the 2014 version can not make me re-mortgage, take a secured loan or extend. If there is no equity then surely that is it?

Hopefully this is the case, Chris. As I said I would havce thought that the initial extension to deal with equity ( or lack of) should have then seen the property excluded from the arrangement altogether and, if your firm try for more I would stick to that arguement. After all, signing the 2014 agreement could not re-instate an excluded asset.

I gather that the agreement you signed, on the face of it, to expedite PPI arrangements, was a bit of a Trojan Horse in introducing other liabilities. However, hopefully it does say "No equity + no loan, re-mortgage or extension".

Hi, based on my original figures posted, would you agree i have no equity? If you do then is it right that the iva would finish and no equity can be pursued. They can't ask for more than 85% LTV can they?

Hi

You have no equity under the 85% ltv so no reason for your IVA to extend any further

Regards

Hi Andy, thanks for the reply it is very reassuring. So even though i have signed the 2014 version which does state the 85% LTV rule, there is no hidden catch that i can be landed with?