Do I have to accept a remortgage or secured loan?

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Suzi47

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Post by Suzi47 » Mon Feb 10, 2020 2:03 pm
Do I have to accept a remortgage or secured loan

Foggy

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Post by Foggy » Mon Feb 10, 2020 2:23 pm
It depends on the version of the Protocol you have, assuming we are talking equity release. The pre- 2014 version was basically a remortgage or extend choice, but after this they brought in the further requirement / option of a secured loan. So, if you have the earlier version you do not have to take a secured loan, but have to take a remortgage, if one is available within the limitations in the IVA agreement. If not then the extension will apply. If you have the later version you have to take either a remortgage or a secured loan, if one is available within the limitations in the IVA agreement. If not then the extension will apply.

All of this is assuming that you have more than £5k equity in order to trigger the clause in the first place.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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kallis3

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Post by kallis3 » Mon Feb 10, 2020 2:31 pm
Have you had your house valued?
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Suzi47

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Post by Suzi47 » Mon Feb 10, 2020 3:39 pm
My IVA is October 2015.
Hi Select Partnership have valued the house, the houses done up to a high standard In the area are £320,000.00 to £350,000.00 my house has been valued at £250,000.00. Should I get my own valuation it probably might come down further to maybe £220,000.00 due to the work needed.
My Mortgage is £108,000.00. My IVA payments are £112 a month so there saying Remortgage or secured loan at £56 a month.
Will I also pay £56 Creditfix until end of year 6. I’m just concerned as my house is In massive disrepair and I was hoping for 1 extension and then try remortgage to do essential house repairs.
Select was nice said due to payment only £56 and that had to include all the fees I wouldn’t be able to borrow much anyway. But my income is due to come down and I will have 2 daughters going to UNI together overlapping by 2 years and I would really like to help them.

Foggy

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Post by Foggy » Mon Feb 10, 2020 3:49 pm
If you get the secured loan, the IVA will end at the end of year 5 and you will then only be paying the £56 per month. Select are normally pretty fair and on the ball.

I don't see any mileage in getting a new valuation, unless it would come in at less than £113,000, which I doubt.
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

abbiesmum2003

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Post by abbiesmum2003 » Mon Feb 10, 2020 6:31 pm
I recommend Select.
Might be worth getting your own valuation done by a local agent who knows what things are selling for. Make sure its a fair valuation not marked up to then take low offers (as you might do when selling).

IF you can get a remortgage with the figures youve provided then the remortgage would effectively ‘payoff’ Creditfix (complete the IVA) and youll only pay the remortgage value and youll get the certificate to say IVA has ended.

If you cant remortgage then youll continue paying Creditfix for the 12 months extension-then get the certificate of closure when thats finished.

Select are helpful and informative. I had my anxieties when they got in touch about our equity release but they did good.
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