font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by chocoholic2
I am certainly no advocate for a secured loan, but maybe the info given by PJG in the very first instance was not accurate? It may have been that at the point we signed our iva' s there was no way we would have been able to re-mortgage..but things change. To be told that was always going to be the case and an extra 12mths would be paid was perhaps a little short sighted.
If you were able to re-mortgage you would be asked to re-mortgage the WHOLE of your outstanding mortgage plus some equity at not a very good rate..as your credit rating would still be poor.
With a secured loan you'd get a rubbish rate for the equity release but the rest of your mortgage would still be at your current reasonable rate, and after year six when your credit score is somewhat repaired you will hopefully be able to re-mortgage the whole lot with a high street lender.
I won't be pushed down this route, but will have a look at the figures when the time comes...horses for courses I suppose.
I would rather extend my payments for 12 months.
Let's not forget that there are limitations as to how much a remortgage is allowed to increase your costs by (up to 50% of the monthly IVA payment iirc?) so you can't be forced into something that hangs you out to dry.
Im probably being thick here but this "payment increase by 50% of iva payment" does that mean if mortgage is £500 and Iva payment is £200, That we can only remortgage/secured loan if it is for £100 (50% of iva payment) taking monthly 'debt' payment to £600??? is that right? and if a secured loan is indicated, over what term? would we ever be free from this situation? when would a CC be released if take a SL? At least with extension there is a clear end and life can restart. Can any clarify this, same for a RM. When are you deemed to have completedIVA.
So far as I'm aware a secured loan monthly payment can be no more than 50% of your monthly iva payment, your iva would finish at month 60. The terms of the loan would be individual..everyone has a different amount of equity to be released, and different iva payments... if this is the route someone chooses they should be careful there are no early repayment charges on the loan or they will get stung when they try to re-mortgage after year 6 when their credit rating is repaired.
Michael, could do with some advice if you do not mind.
My IVA was taken out in 2014 but is non protocol, I had written into the terms that a secured loan could not be used to refinance, only a re-mortgage or a 12 month extension.
Is that water tight in your eyes? Just in your opinion that is.
Sounds fine Bob provided no one modified the agreement at the meeting of creditors and you do not agree to any changes in the terms and conditions. Check the Chairman's Report to see if anything was included there otherwise seems fair to stand your ground.
The only potential problem is that remortgages may again be available when it comes to month 54 of your IVA. If so and you do qualify it would be worth looking at the secured loan option too in case it is more beneficial to you.
The wording in the creditors meeting is exactly the same as what was proposed so all should be well, maybe more people should go for a non protocol IVA but as you say a secured loan may well be a better option when the time comes.
