Equity Release!

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by abbiesmum2003 » Wed Jan 17, 2018 10:20 pm
Well can you believe it!
The time has come that we have to look in to equity release!
Cant believe it. But. This is a nee part of this process and I will have to dig out our original T&C's.
You older members will remember we set up IV a with Mel but got changed to Creditfix.
We did not sign their revised T&C's so should remain on our original ones which clearly state 'Remortgage'. No mention of secure loan.

We have been told we have been referred to a team called Select Partnership. Has anyone any experience of this company? Reviews are mixed and lots of forums mention 'pressure' and 'significantly increased payments'.

Bit worried as we had been doing ok.

I understand we have to try and release equity. And there will be equity im sure. I understand its the whole 85% LTV amd £5,000 each malarky (although I did when we first discussed it!!!!!)

I have always believed we wouldnt get passed for a remortgage but if theres a company hired to sort it and who will
no foubt be paid bonus for customers etcI feel we will be pressured into a decision amd wont have a leg to stand on.

If they find a mortgage for us wha figures will it use? What sort of value do you remortgage using?? Are we commited to having to accept a remortgage deal or can we choose to pay an additional 12 months instead? I have always though we wouldnt get a mortgage due to credit rating and it will be the payments but as theres a specific chosen company involved I fear they will find one but it wont be in our best interests.

Can any give any advice so Im prepared for when the letters and phone calls start amd knkw where I stand.

Thank you
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by Foggy » Thu Jan 18, 2018 8:13 am
Select have, in the past, deemed it not in the debtors interests to proceed, where that is the case. They will look at the figures and, possibly, offer a secured loan -- which you are not obliged to accept -- if one is available. A remortgage is unlikley, though not impossible --- they used to be freely available (which is why they were written in) and might be again as things change. But, a remortgage and a secured loan are not the same thing -- as Mel went to great lengths to prove.
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Industry Expert
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by Ryan » Thu Jan 18, 2018 10:27 am
Please don't feel pressurised into doing something that may not be in your best interests. If your existing Mortgage is with a High Street Lender then re-mortgaging now to a specialist Lender who may lend would lead to you paying a higher interest rate on your whole mortgage. In that scenario it may be best to do the extension then when you Complete there are High Street Lenders who will consider lending to you.

Others have mentioned taking secured loans to end the IVA 'early' but many haven't seen the benefit of doing so as the IVA will still appear on your credit reports for the full 6 years.

All the best with however you decide to proceed.

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