When releasing equity via a secured loan to pay into an IVA does, for example, Select Partnership fee get added to the loan or is it deducted from the amount paid over to the creditor?
For example:
Secured loan = £10k
Select Partnership fee = £3k
Paid to creditor =£10k
Total loan to be paid by debtor = £13k
Or:
Secured loan = £10k
Select Partnership fee = £3k
Paid to creditor = £7k
Total loan to be paid by debtor = £10k
Sorry, can't help but I'm sure Foggy will be along.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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We did a secured loan with select.
Nothing comes out your own pocket.
The loan amount included fees.
Select took a cut from whatever we could be lent from a lender based on the strict criteria that the payment has to meet and the lenders affordability check.
Whatever we released from our
equity, creditors didnt actually get it all.
Select should be able to explain fully and send you a breakdown/illustration like you get with a standard mortgage application.
So an increased debt (Select Partnership fees) is added to the loan and the cost not deducted from the amount paid to the creditors to end the IVA, secured against your house.....
If this is the case then the issue I have regarding fairness is, for example, PPI claims have fees deducted from the amount recovered by the IP (15%) and appointed claims company (up to 60%) and only the remaining balance going to the creditors.
Would be interested in hearing the views from the forum experts and perhaps Shaun from Select Partnership.
These deductions are industry wide and agreed with the creditors. In the case od PPI I guess that 40% of something they were neither expecting, nor would have got otherwise at all, is a bonus to the estimated initial dividend.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your post Foggy, always enjoy reading your posts / replies. It would be useful to debtors if the Companies offering help to enter into an IVA discuss this sort of thing from the outset so a more informed decision can be made. This forum is an uplifting source of knowledge and definitely helps to get through the journey.
To be fair we didnt look into that closely.
The creditors agree to all these fees etc .
We had paid our 60 payments, had house valued, got approved for a loan which meant we could exit our iva after the 5 years and br free with just a loan payment. Finances no longer being scutinised and we could finally look at moving on.
We could have gone BR and creditors get next to nothing but we did iva amd paid back what we could after all we borrowed it.
If you spend ages looking into all the fees amd who gets what youll drive yourself mad.
At the emd of the day the creditors agree to all the fees whether you think its fair or not its their pot its all coming out of.
We paid our iva. We got equity releaesed. We got certificate and it ended. 12 months old our credit scores are all excellent. We have savings. Credit cards. All being well a high street mortgage for new house. clean credit reports and the education completing an iva gave us.
We paid what we should have done into the pot and it got shared out. Thats what they agreed to and we met our responsibilities.
Best thing we ever did.
Select do a grand job and creditors have agreed for their fees to do it. If you dont qualify to release equity you pay another year into IVA but thats has its pros/cons depending on curcumstances (windfalls etc).
Its not made an ounce of difference to us what fees got paid to who. We met our terms and conditions and moved on.
Tue Apr 07, 2020 7:26 pmDebtfreewannabe2022 wrote:
Thanks for your post Foggy, always enjoy reading your posts / replies. It would be useful to debtors if the Companies offering help to enter into an IVA discuss this sort of thing from the outset so a more informed decision can be made. This forum is an uplifting source of knowledge and definitely helps to get through the journey.
Thank you for your kind comments. Unfortunately, at the start, none of us know what questions to ask. I just hope that people find us before they commit, so they can read around the forum and see what issues do arise, then ask those questions upfront.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think this was addressed in a previous post but, in essence, the calculation of figures works backwards. The amount required to be released is calculated, in accordance with IVA protocol rules (so maximum 85% LTV, co-owner's interest protected, observing deminimis clause, maximum increase in mortgage payment at 50% of IVA contribution etc.). Any fees payable are then deducted from this in order to establish the amount available to creditors. It's just that, when putting the loan into practice, this is then the basic loan amount and then the fees are added - it's just a technicality, the figures are exactly the same. It is a little confusing but hopefully that explains?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
