Equity release ball rolling, however.....?

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MarcC

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Post by MarcC » Fri Sep 24, 2021 7:00 am
Hi, I would like some advice if possible.

I have just received my letter from Creditfix to get the ball rolling with the equity release. They are employing a third party for this, the usual company that they use.

However, with the new guidance set by the government am I able to decline to proceed and opt for the extended 12 months and how would I go about doing this?

Kind regards.

Marc

Foggy

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Post by Foggy » Fri Sep 24, 2021 7:15 am
Although the amendments are still in force until December 31st 2021, as amended 30 July 2021, para 1.12b states: The provisions of paragraph 1.12 should not be used after 31st July 2021, paragraph 1.12 (a) remains.

Para 1.12 being: No attempt should be made to realise a consumer’s home equity under paragraph 9 of the protocol during the pandemic unless the consumer agrees to proceed. The supervisor will retain the discretion to extend the IVA for up to 12 months in order to allow the consumer to complete their IVA. Voluntary release of equity can continue to be included in new proposals.

And para 1.12(a) referred to being: If the impact of the pandemic means that the consumer is unable to release equity which they may otherwise have been able to (this may be due to the consumer taking a break from their mortgage payments) then consideration should be given by the supervisor to use their discretion to add an additional 12 months of payments to the arrangements. The supervisor must also factor in any missed/reduced payments under this guidance and provide a breakdown to the consumer on the number of additional months and the level of payment to ensure it is affordable.

From that it would appear that you have missed that particular boat.
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

MarcC

Posts: 2
Joined: Fri Sep 24, 2021 6:52 am

Post by MarcC » Fri Sep 24, 2021 7:20 am
Thank you for the quick reply. It is most appreciated.

I will get in touch with Select Partnership and see what the next steps will be. In an ideal world the 12 months extension seems more "hassle free" at this final step in my IVA. I'll keep my fingers crossed that this will be the outcome after two rejected remortgages.

This last part is the part I am dreading for some reason. I'm hoping it's not as bad as I'm expecting.
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