Yes, this is all a bit up in the air, but before people start fretting undully about this, we must remember that, strict affordability criteria apply. Monthly loan repayment is limited (max.50% of current IVA payment, with remaining IVA repayments reduced by the same amount). So the higher the APR, the less you can borrow. As soon as your credit rating is restored, you swap to a sensible-APR loan (may be easier said than done of course).
One assumes as well that usual lending criteria will apply, such as multiples of the secured debt in relation to your income. In my case for example, my mortgages total approx. 7x my household income. So even if I had significant equity, it is doubtful if anyome is going to give me any more 'secured' borrowing.
Furthermore, without wanting to sound too controversial here, my attitude towards equity release via the secured loan route, has relaxed somewhat. Compared to a sub-prime remortgage for the entire property debt, keeping your prime mortgage, and only having to take out a relatively small loan (even with the shocking fees and high-APR), will actually work out massively cheaper in the long-run for many (not as cheap as a 12-Month extension, I grant you).
I also wonder if, now that this protocol is in place, there will be more secured loan competition between companies. This may help lower the current extortionate credit-card-like interest rates being charged by some loan companies at the moment, not to mention the mickey-taking 'arrangement' fees.
But for sure, if you are a homeowner contemplating an IVA now, you will have to factor in the 'risk' that you may end up with one of these products. If it is then going to take say, 15-20 Years to become debt free, then alternatives like DMP's may suddenly seem a little more attractive in comparison.
Time will tell.
My opinions are just that: Based on my experience and being a self-employed IVA customer.