Do I have to accept the mortgage deal to complete my iva

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paolo
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by paolo » Fri May 11, 2018 11:27 am
I am at the end of a 5 yrs IVA,joint with my partner.A third party mortgage lender has had a look at our final year and their final advice is that we need a mortgage to pay back the creditors the equity that would take us a further 4 years to clear if we pay £500 per month.They said we had no option of an extra IVA repayment,do I have to accept this final deal?they say they are independent and regulated for independent advice.My only frustration is having to pay again another sum for years,and I won't be able to repay much into my existing mortgage,because of this.If we agree the IVA will finish.Currently we pay £1,100 monthly for the IVA.Please can you advice?thanks so much
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Foggy
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by Foggy » Fri May 11, 2018 11:51 am
Depending on the options agreed in your equity release clause you might be able to take a 12 month extension to the IVA instead. Pre 2014 terms stated remortgage, if possible or extension, if not, after that they added secured loan as an option.
The second charge the lender is suggesting is not the same as a remortgage and, if, as I suspect, you have the old terms you are not obliged to accept, You have to weigh up whether you want to pay another 12 months at £1100 (£13,200) and still be bound by the IVA for longer. Or, finish now with the loan at £500 for 4 years £24,000). Nearly twice as much, but free of the IVA. Your credit rating will not clear any earlier, however.
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Lisa Thomas
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by Lisa Thomas » Fri May 11, 2018 3:23 pm
Nb it won't be a joint IVA - it will be interlocking.
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paolo
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by paolo » Fri May 11, 2018 4:12 pm
Foggy wrote:
Depending on the options agreed in your equity release clause you might be able to take a 12 month extension to the IVA instead. Pre 2014 terms stated remortgage, if possible or extension, if not, after that they added secured loan as an option.
The second charge the lender is suggesting is not the same as a remortgage and, if, as I suspect, you have the old terms you are not obliged to accept, You have to weigh up whether you want to pay another 12 months at £1100 (£13,200) and still be bound by the IVA for longer. Or, finish now with the loan at £500 for 4 years £24,000). Nearly twice as much, but free of the IVA. Your credit rating will not clear any earlier, however.


Thanks.interesting.as they said if we get 4yrs mortgage the iva will end and credit will be restored after 3-4 months..
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Foggy
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by Foggy » Fri May 11, 2018 4:19 pm
paolo wrote:
Foggy wrote:
Depending on the options agreed in your equity release clause you might be able to take a 12 month extension to the IVA instead. Pre 2014 terms stated remortgage, if possible or extension, if not, after that they added secured loan as an option.
The second charge the lender is suggesting is not the same as a remortgage and, if, as I suspect, you have the old terms you are not obliged to accept, You have to weigh up whether you want to pay another 12 months at £1100 (£13,200) and still be bound by the IVA for longer. Or, finish now with the loan at £500 for 4 years £24,000). Nearly twice as much, but free of the IVA. Your credit rating will not clear any earlier, however.


Thanks.interesting.as they said if we get 4yrs mortgage the iva will end and credit will be restored after 3-4 months..



No it won't --- while the IVA has any mention on your credit files your rating will remain shot.
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Lisa Thomas
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by Lisa Thomas » Mon May 14, 2018 8:27 am
It's 6 years from the start of your IVA so if you have 5 years under your belt and you completed the IVA successfully you have about one year left.
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kallis3
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by kallis3 » Mon May 14, 2018 8:34 am
You also have to wait until you have your completion letter before it drops off your record. You may have to wait up to six months for that.
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