www.iva.co.uk

Read today that a Lib Dem Peer has called on the Chancellor to ban the Northern Rock 125% loan to value Together Mortgage.

This is a product that has a 95% secured element and 30% unsecured.

The issue being raised that in his (the peer) opinion "this type of loan is doomed to fail from the start".

It amazes me that no attention has ever been turned toward the negative equity secured loan, which unlike the together product is entirely secured, I have said it before and will again I can never see why this product would be "best advice" or even "good advice".

Are there any instances of this being a panacea for anyone!

The amount of misery I have seen where these are concerned is staggering.

I agree, we had the Together mortgage AND a secured loan! Totally our own fault for applying for them, but we were desperate and couldn’t see any other way out for us. This ended up plunging the house into negative equity to about £30,000

About time somebody took some notice of what a lot of brokers/advisors have been saying for a long time...

Jane, How did you get on with your Together mortgage and IVA? Im in the same position, and they contribute to my major debt (before anyone says it, yes, its going to be difficult). Just wondering what your experience was.

Rich

jane.l wrote:

I agree, we had the Together mortgage AND a secured loan! Totally our own fault for applying for them, but we were desperate and couldn’t see any other way out for us. This ended up plunging the house into negative equity to about £30,000

Northern Rock are just about the worst lender in the market.

They almost always go for charging orders if you default on the unsecured portion of the loan. If you remortgage and not clear the unsecured portion you trigger an accelerated payment clause. They always vote against IVA's as well according to my xources.

Trouble is I dont see the Branson alternative providing an better alternatives !

It simply confirms a theory I've had for a long time...... The easier a lender is to borrow from the tougher the treatment when you fall on hard times.

To R12

Unfortunately, we could not do an IVA, because of the house situation ( and probably would not have been accepted anyway, my IVA company did not tell me about the problems with NROCK turning down IVAs, I know now from this forum!) we had a lot of debt to NROCK

We wanted to sell the house but the secured loan company said no, they would not release the 2nd charge, we had a cash buyer and were at exchange of contracts stage. We then proposed that we sell the house and put any shortfall into the IVA and move to rented accommodation. My IVA company were convinced they could get the secured loan company to see reason and allow the sale, they would have got about £16,000 from the sale, there would have been a massive shortfall so I suppose I cannot blame them for saying no! The secured loan company would not budge, in fact, we had stopped paying all creditors a few months before on advice from the IVA company but Picture Finance dragged it out for nearly 5 months before they bothered to write to us to tell us “no sale!” You can imagine the creditor pressure all that time, it was awful, I nearly had a breakdown, I still shake and get palpitations when the phone rings, I’ll never get over it, NROCK were relentless in their calls

In the end, we thought sod ‘em, we moved into rented accommodation and left the house to repossessed and are now bankrupt. When the house sells, there will not be enough to pay the Northern Rock mortgage, they have taken so long to repossess it, never mind the £35,000 to Picture, there will be nothing for them at all.