www.iva.co.uk

Hi.

Well, we are finally at our equity release part of our IVA. We have been thrown a bit of a curveball.

Our IP, who has been excellent, have sent us a letter to present to our potential lender (totally up to us who we go to) that explains our situation, why we need a remortgage and a (hugely inflated) valuation of our property - in fact, properties larger than ours and with an extra bedroom have sold for 15k less than our valuation!

I'm not quite sure what to do. I'm a little reluctant to go to our current lender with the letter as it may mess up our current rate or any future borrowing (as I'd love to move - I hate our neighbours). Do we just walk into any mortgage provider and ask and hopefully receive a letter of rejection. What about previous lenders who are included in the IVA? Avoid them? I'm also reluctant to ask in my bank as I have full bank account.

Does anyone know of a bank that will just point blank refuse to entertain an application?

Thanks in advance.

Hi, your at the same stage as me. You could try online rejection. I think Chelsea BS and maybe Yorkshire do online applications and you can screenshot rejection. You could also try you own valuation - how much equity do you think you have? Not worth it if there is a large equity available to release into the IVA.

Can you challenge the valuation to the extent that it does not trigger the release clause ? If not, the grossly inflated valuation is irrelevant in any case as you are unlikely to get a remortgage anyway.

You can approach whichever lenders you wish and do not have to present them with this letter.

Thanks for the replies. No way could we get the equity down to below 5k so I guess the valuation is irrelevant.

We need to dig out our original agreement as I'm sure the funds they are asking for us to release are double what was in our original paperwork.

Well, we had an interesting day.

We went to the nearest building society to our work, spent 45 minutes explaining the pickle we are in. Showed them the covering letter we were sent. Then were told "No way would we lend you any money". I asked if we could have that in writing "No". I rang their head office, explained the situation and pointed out that we had spent almost an hour going through the process with one of their colleagues in a branch and they also said they would not lend us any money or prove they would not.

I rang my IP and they are sending out a document for us to sign as we have tried but could not prove it.

Apparently this is becoming more and more common.

Currently, though this might change as markets change, it is commonly accepted that you will not get a remortgage and I think IP's and creditors alike should exercise some common sense instead of forcing clients through this humiliating charade.

Yes, it wasn't great explaining the last five years to someone sitting in the corner of a busy building society.

Add to that the fact that you are coming to the end of quite an ordeal and you are given a nice, shiny new black mark against you.

It seems very outdated and poorly considered. I dare say with newer IVAs and the ability to obtain secure loans in lieu of equity release this may not be the case for much longer.

Quick update. We received our paperwork to sign in lieu of anyone providing written refusals of lending.

They wanted two verbal rejections. We had to go into another bank/building society and get another verbal refusal.

Both Newcastle Building Society and HSBC flat out refused to lend or provide written confirmation. Aside from that they were very helpful and sympathetic.

You've got to love HSBC !!!!

It must be a bit ironic to be pleased that you have been turned down! Good luck.

I am pleased. But worried about what is next, fingers crossed for 12 payments (as per our protocol compliant agreement).

Yes unless you can get a family member/friend to 'gift' you the same sum needed to bring it to an early end instead...

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas

It must be a bit ironic to be pleased that you have been turned down! Good luck.

It is "Topsy Turvy" here, Lisa. We celebrate the act of being made formally insolvent, and also being turned down for mortgages !

Ha Ha

We are getting there. We sent off our signed disclaimer stating that we have approached two lenders who both refused to lend us any money and refused to evidence this in writing.

We now have a letter that asks if we can either:

i) borrow monies from a third party (friend or family member)

or

ii) pay an additional 12 payments

It'll be the 12 payment option as we don't know anyone with the amount of money they are talking about.