Creditfix changes mind

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Diesel6976

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Post by Diesel6976 » Mon Jun 29, 2020 7:45 pm
I hope someone can help. I owe approx £37k for debts so entered into an IVA, I currently have paid £13k (I know most of that is Creditfix charges)

I am now in final year I had a call to confirm they have been unable to remortgage and offered two options. I don’t have anyone to make a lump sum payment so it’s been extended for a year.

The next day they rang again and said it was an admin error (even though they called me) and that they can remortgage property and to pay the debts I would have to remortgage for £60k at a variable rate. Is it legal for them to change the mind if you have already agreed to extension of 12 months?

Thanks in advance

Foggy

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Post by Foggy » Mon Jun 29, 2020 7:59 pm
I would say yes, as it is still within the terms of the agreement. However, check that everything else is:

Are the payments for this £60k less than half the IVA payments ?

Do they need £60K ? .... on a debt of £37k the max you would pay back would be in the region of £46k plus possible stautory interest of around £12k, so a total of £58k, less the £13k already paid leave a balance of around £45k

Is there £60k equity anyway ... and do you agree the valuations ?

Is this a remortgage or a secured loan they are talking about ? (They are not the same).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diesel6976

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Joined: Mon Jun 29, 2020 7:23 pm

Post by Diesel6976 » Mon Jun 29, 2020 8:13 pm
Thanks for reply I currently have approx £5000 mortgage to pay in under 2 years left. They are wanting me to get remortgage for £60000 over 11 years and the additional cost on what I pay currently for mortgage at the moment is half of the Iva payment, I don’t agree on valuation.

I am very unsure on if it’s a secured loan or remortgage as it talks about mortgage illustration and also states Norton home loans so it’s very confusing.

Diesel6976

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Post by Diesel6976 » Mon Jun 29, 2020 8:55 pm
What should I do?

Foggy

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Post by Foggy » Tue Jun 30, 2020 8:20 am
Who is placing this mortgage ? Are you dealing with Select (who sometimes work for CF, I believe). If you are - speak to them -- they are far more aproachable than CF and deal fairly, within the agreed IVA terms.

I asked about the valuation to see if the release clause should have been triggered in the first place --- but, with your outstanding mortgage, it is obvious that it would. So, in this case, the valuation won't help us -- the clause has been well and truly triggered. I assume 11 years takes you up to state retirement age ( another of the usual limitations).

On the face of it you have to accept the remortgage, which, due to your current situation, will be at a high rate of interest. The usual course is to re-finance this at a better rate once your credit rating has recovered.

I would still question the amount that they are asking for, which seems over the top to me ( But CF are probably one of the most fee grabbing firms out there !). Ask for a detailed breakdown of their calculations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diesel6976

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Joined: Mon Jun 29, 2020 7:23 pm

Post by Diesel6976 » Tue Jun 30, 2020 10:51 am
Update

They have rang again and apologised and have agreed 12 months extension.

All being sent out in writing.

Foggy

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Post by Foggy » Tue Jun 30, 2020 11:24 am
Phew !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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