Equity release question

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mel568
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by mel568 » Sun Jun 03, 2018 7:09 am
Both myself and husband are on a IVA that's now coming up to month 63 including an extension of 5mths due to additional income,
We are now at the stage of looking to release equity in our property
We have not received any feedback from our current IP (Vangaurd) after our yearly review some 2 mths now,
We have since been contacted by a company called Select who are looking into the remortgage we have sent statements on current mortgage balance and secured loan on the property (and very limited other information)
They have since been in contact and can provide a remortgage with one of their brokers (still no details after almost 1.5wks) at an extremely high rate of 6.5% and all with the privilege of a set up fee between 2.5k and 3.9k (again not confirmed)
Our mortgage is due for completion in 3 yrs this new agreement will carry on for 16yrs pushing us more into debt,
Through other people's experience has anyone had experience of this company before?, and is this our only option or is there any other alternatives available?,
Very worried frustrated and angry as the whole industry seems to revolve around lining their own pockets
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kallis3
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by kallis3 » Sun Jun 03, 2018 8:15 am
Check your paperwork - if there is no mention of a secured loan (which this is) , if you have equity you can just continue on for a further year. Have you had a valuation done?
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abbiesmum2003
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by abbiesmum2003 » Sun Jun 03, 2018 8:48 am
We have been dealing with Select since Feb this year to deal with equity release.
They made contact with us so at first very cagey and cautious but have found them reliable, professional and helpful.
We have opted for a secured loan even though not in our t&c's because it feels the better option for our circumstanes.
The amount we can borrow is significantly less than what we had invisaged. The I&E they went through with us was based on our actual spending not our allowances. They understood the guidelines for an IVA and what was required.
Dont be afraid of Select, they have been the most reliable and professional part of this journey. However dont take on something that doenst work for you. With 3 years left it doesnt seem sensible and surely continuing iva payments may be better however that also means you are tied to the clauses for that time too. we wanted to get out of it and be free from the ties of an iva. We have gone down the loan route and yes its for longer than our mortgage but it gets reviewed by select in 12 months time and secured on the house so when we eventually sell we will pay off the loan so its technically not gonna stick around for 16 years. Could only be 1-2 depending on if/when you sell or can pay it off.
Hope that makes sense and helps. Stick to your guns though. They have been a good and understanding company to deal with
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mel568
Posts: 7
by mel568 » Sun Jun 03, 2018 9:15 am
kallis3 wrote:
Check your paperwork - if there is no mention of a secured loan (which this is) , if you have equity you can just continue on for a further year. Have you had a valuation done?


Thanks for your reply Kallis3 ref your questions no mention of secured loan on paperwork just to seek a remortgage
No valuation has been done as we were waiting on the paperwork to arrive to reveiw figures,
Select have stated it's a remortgage that will pay off current mortgage / loan and remainder to our creditors
We have been told no high street lenders will touch us due to the IVA
User avatar
mel568
Posts: 7
by mel568 » Sun Jun 03, 2018 9:31 am
abbiesmum2003 wrote:
We have been dealing with Select since Feb this year to deal with equity release.
They made contact with us so at first very cagey and cautious but have found them reliable, professional and helpful.
We have opted for a secured loan even though not in our t&c's because it feels the better option for our circumstanes.
The amount we can borrow is significantly less than what we had invisaged. The I&E they went through with us was based on our actual spending not our allowances. They understood the guidelines for an IVA and what was required.
Dont be afraid of Select, they have been the most reliable and professional part of this journey. However dont take on something that doenst work for you. With 3 years left it doesnt seem sensible and surely continuing iva payments may be better however that also means you are tied to the clauses for that time too. we wanted to get out of it and be free from the ties of an iva. We have gone down the loan route and yes its for longer than our mortgage but it gets reviewed by select in 12 months time and secured on the house so when we eventually sell we will pay off the loan so its technically not gonna stick around for 16 years. Could only be 1-2 depending on if/when you sell or can pay it off.
Hope that makes sense and helps. Stick to your guns though. They have been a good and understanding company to deal with
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kallis3
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by kallis3 » Sun Jun 03, 2018 9:33 am
I would have a valuation done - you may not have enough equity.
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Foggy
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by Foggy » Sun Jun 03, 2018 11:22 am
Standard Protocol Terms, prior to 2014 do not include secured loand, those after 2014 might do. However, total refinancing is a remortgage, so they could force this on you. Be aware, though, that there are other limitations, viz:

Remortgages would be a maximum of 85% LTV
The monthly cost of the remortgage will not exceed 50% of the agreed IVA payment
The net worth release will not exceed 100p in the pound, excluding statutory interest
The remortgage term does not extend beyond the later of the debtor's stat retirement age or the existing mortgage term
The amount of money introduced into the arrangement shall be the mortgage proceeds less the costs of the mortgage, including any costs to redeem any existing mortgage or secured loan.
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mel568
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by mel568 » Sun Jun 03, 2018 11:52 am
abbiesmum2003 wrote:
We have been dealing with Select since Feb this year to deal with equity release.
They made contact with us so at first very cagey and cautious but have found them reliable, professional and helpful.
We have opted for a secured loan even though not in our t&c's because it feels the better option for our circumstanes.
The amount we can borrow is significantly less than what we had invisaged. The I&E they went through with us was based on our actual spending not our allowances. They understood the guidelines for an IVA and what was required.
Dont be afraid of Select, they have been the most reliable and professional part of this journey. However dont take on something that doenst work for you. With 3 years left it doesnt seem sensible and surely continuing iva payments may be better however that also means you are tied to the clauses for that time too. we wanted to get out of it and be free from the ties of an iva. We have gone down the loan route and yes its for longer than our mortgage but it gets reviewed by select in 12 months time and secured on the house so when we eventually sell we will pay off the loan so its technically not gonna stick around for 16 years. Could only be 1-2 depending on if/when you sell or can pay it off.
Hope that makes sense and helps. Stick to your guns though. They have been a good and understanding company to deal with


Thank you for your reply abbiesmum 2003 glad you have found an arrangement that works for you and getting back on track
I know it's early days dealing with select but all the way through this senario no one has been able to answer our questions people say they will get back to us but never do, state one thing then when the time comes it then changes hence the frustration
Our situation is different as we are not looking to sell the house down the line and yes we have been told in about a yrs time we will be able to approach high street lenders, but due to past experience as stated above I am dubious even this statement is correct and we will be tied in to the high interest rate for the duration,
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mel568
Posts: 7
by mel568 » Sun Jun 03, 2018 11:57 am
kallis3 wrote:
I would have a valuation done - you may not have enough equity.


Thanks for the advice we were thinking along these lines ourselves,
Was waiting on the paperwork from Select to understand thier findings, going to call some people next week
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mel568
Posts: 7
by mel568 » Sun Jun 03, 2018 12:04 pm
Foggy wrote:
Standard Protocol Terms, prior to 2014 do not include secured loand, those after 2014 might do. However, total refinancing is a remortgage, so they could force this on you. Be aware, though, that there are other limitations, viz:

Remortgages would be a maximum of 85% LTV
The monthly cost of the remortgage will not exceed 50% of the agreed IVA payment
The net worth release will not exceed 100p in the pound, excluding statutory interest
The remortgage term does not extend beyond the later of the debtor's stat retirement age or the existing mortgage term
The amount of money introduced into the arrangement shall be the mortgage proceeds less the costs of the mortgage, including any costs to redeem any existing mortgage or secured loan.

Thanks Foggy we are aware of the info you stated above, the issue is around the way the whole buisniss is conducted with high rates extortionate set up fee, Just trying to find if any other options available
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kallis3
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by kallis3 » Sun Jun 03, 2018 1:12 pm
Have a word with either Shaun or Ryan who are our resident mortgage experts to see if they can be of assistance.
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mel568
Posts: 7
by mel568 » Sun Jun 03, 2018 2:49 pm
kallis3 wrote:
Have a word with either Shaun or Ryan who are our resident mortgage experts to see if they can be of assistance.

Ok Kallis3 we will thanks for your help
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Shaun Vickery
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by Shaun Vickery » Mon Jun 04, 2018 1:56 pm
Very often, and uniquely in this situation, a higher rate can actually be advantageous. This is where we rely on the clause in the IVA which determines that the increase in mortgage repayments cannot exceed 50% of the IVA contribution. A higher rate means having to release less equity, which is actually much better when you are able to re-mortgage again back to high-street rates in the future. Any fees have to be included in the amount released and therefore have no impact on the amount you have to borrow in real terms. Don't forget of course that the terms which will be applied are only those that were proposed to your creditors at the outset and the debt it only written off at the end of the IVA so this isn't really more debt.
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abbiesmum2003
Posts: 659
by abbiesmum2003 » Mon Jun 04, 2018 5:40 pm
I notice you work for The Select Partnership Shaun based on your email address....just want to say thanks to the team members Ive had dealings with there to sort our equity release out. It wasnt the plan I was expecting us to do at the end but having had many chats and very good explanation from the team it is hopefully a good offer for creditors and will halve our monthly outgoing compared to iva. Borrowing much less than we thought we would have too and always respond to emails, callback when say they will and answer queries timely amd consistently. I was anxious at first as thought they were 'out to get me and as much money as possible' but actually found them to be helpful and realistic so good work Select Partnership
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Foggy
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by Foggy » Mon Jun 04, 2018 7:00 pm
abbiesmum2003 wrote:
I notice you work for The Select Partnership Shaun based on your email address....just want to say thanks to the team members Ive had dealings with there to sort our equity release out. It wasnt the plan I was expecting us to do at the end but having had many chats and very good explanation from the team it is hopefully a good offer for creditors and will halve our monthly outgoing compared to iva. Borrowing much less than we thought we would have too and always respond to emails, callback when say they will and answer queries timely amd consistently. I was anxious at first as thought they were 'out to get me and as much money as possible' but actually found them to be helpful and realistic so good work Select Partnership


Sometimes these alternatives do work to our advantage and I would always say to keep an open mind -- at least armed with the figures an informed choice can be made. Select do know the terms we are all bound by and do work within them (often putting a better emphasis on fair play than the Insolvency firms themselves).
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