www.iva.co.uk

Hi wondering if anyone can help . If we have £77,000 outstanding on mortgage and house is valued at £99,000 how much equity will we have with the 85%ltv ?

The usual way this is worked out is 99,000 x 85% = 84,150. Less secured borrowing of 77,000 = equity of 7150.00. If two of you own the house that will be half each.

GT work it out differently as 99,000 - 77,000 = 22,000 equity x 85% = 18,700. They have been challenged on this before and have admitted the other way could also be correct (which is the method they used for years previously), but they continue to use the method which favours the creditors (and their own pockets).

Which I think is scandalous, Foggy!

GT/Apeture are currently doing whatever is easiest for it and that generates more money.

I recently looked at the balance sheets for a couple of the larger names - they don't actually have that much cash - they just process a lot of cash.

With the downturn in the market by around 30% worse case is 1 in 3 companies could go to the wall.

Additionally the impact of the living wage will also help drive up their direct costs.

More of "whatever is easiest" will start creeping through.

Whatever their financial position, conning those in IVAs into a further year to try and bolster their coffers is unacceptable.

The whole IVA industry needs regulating properly in my view.

Thank fully they are not being asked to take a secured loan.

Yet