Hello, I wonder if you can help me please? My husband is in month 55 of his iva. There is an equity release clause in the iva. Our iva company have asked a financial advisor to try and source a remortgage deal for us as we were unsuccessful in doing so. It states on our original documentation that if a remortgage was not available then he would have to pay another 12 months.The financial advisor has now contacted my husband today to say a loan has been agreed in principle for £8950 at £134 a month over 15 years, secured on the house. This works out at over £24k . . surely this is wrong? It seems scandoulous that a company who are meant to be trying to help you out of debt are even suggesting such a loan.
We would prefer to pay an additional 12 months rather than pay a loan for 15 years !
Any advice on how we should proceed would be very welcome.
regards
MB
What sort of loan - presumably a secured loan? Unless the terms of your IVA specify that this is necessary, if you have been unable to source a re-mortgage you should be able to rely on the additional 12 months payments - which I agree are far more favourable than a lengthy loan secured against your home. You will be paying back £24,000 for a £9,000 loan. Outrageous!
Which IP firm are you with, and did you give instructions to the financial advisor to look into a secured loan?
I will remain silent, but have my own idea as to which firm this is.
In any event, if your proposal says remortgage or extension then that is what must happen. A remortgage is not the same animal as a secured loan and they cannot force you to take one out.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The APR on this particular proposed secured loan works out at 16.3%.
Nice...
Not seen ANY posts of a similar ilk whereby the given APR is around 11.9% as Shaun Vickery claimed in a post a few weeks ago as the norm being offered to secured loan applicants in IVA`s.
Last edited by Goosed on Wed Mar 05, 2014 11:26 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
I am also concerned about all the talk lately about secured loans with lengthy repayment terms. If we were told this was a possibility at the beginning most of us would of probably considered this option to consolidate our debts instead of the iva route in the first place.
scandalous really when you think of how your IVA was 'sold' to you as the simplest and safest option at the beginning.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
Do remember that most people can only get a secured loan of up to 75% loan to value, and there aren't many people in IVAs who have that level of value in their properties.
