www.iva.co.uk

I am in month 53 of my iva and ip is telling me I've £17000 equity - I tried to get a remortgage by 3 different lender who all declined! Now ip saying they have specialist broker who may lend! Initially I said no but now they are saying they will write to my creditors unless I reconsider! Has anyone had this experience??

I suspect they are referring to a secured loan rather than a re-mortgage.

In practice, I don't think anyone can re-mortgage ever whilst in an IVA.

Check your terms carefully, see if it mentions a secured loan as well as re-mortgage. I think the majority mention only a re-mortgage. A secured loan is NOT the same thing as a mortgage and don't let anyone tell you different.

All depends upon the wording in your proposal. If it says remortgage or extension, those are the options. As Hubert says a secured loan is not the same thing as a remortgage. However, some wordings refer to secured lending or "third party funds" --- and it is this "third party" bit that is open to interpretation. Some IP's are taking the line that this includes a secured loan.

My arguement is that, if secured lending WAS intended then there would have been no need to specifically introduce it in the 2014 Protocols --- the fact that it WAS specifically introduced points to the fact that it wasn't previously intended.

It does mention 3rd party! Is it best to go along with there broker because it also mentioned that if repayments are more than 50% of my monthly payments it is invalid. I don't think I will get a remortgage for £17000 for less than £109 per month over 15 years (or can they make you pay longer than your current mortgage term) ! Stressed!!!

There is no way you will get a remortgage so see how the figures pan out for the secured loan.

Have a word with Shaun Vickery of Select who posts here as his firm are specialists in secured loans for those in IVAs. You are correct that you can only pay back the borrowing at a maximum of 50% of the IVA payment so it may be that you can only raise a much smaller amount than the full £17k. If this is the case creditors will usually happily accept this and your IVA can close down.

3rd party is not the same as a secured loan. Check the wording of your proposals carefully.

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

3rd party is not the same as a secured loan. Check the wording of your proposals carefully.

I agree, Lisa, however there have been instances of some IP's thinking otherwise ! As a matter of course, in such circumstances, I would challenge it.

Thank you for all the advise,
I am right now in the middle of an email to IP telling them that i am happy for them to write the letter. I have asked them to ask for the 12 month extension on the payments.i have asked them to advise the creditors that i have explored all avenues set out in the IVA Protocol which has shown that i cannot remortgage.
I have also asked for evidence that their request to use a broker suggested by them is within my terms.
How does all this sound??
Do i need to include anything else??

Yes sounds good to me.