Hi everyone. I have made my last payment on my IVA and Aperture handed my details to Select Partnership to deal with equity release. Me and my wife mortgaged half the property and the other half by A2 Dominion via Key worker scheme. I was paying £836 per month.
Here are my figures:
Property valuation around £300,000
£150,000 to A2
£150,000 me and my wife but since she is not included in the IVA, she gets to keep her share of equity. Our mortgage redemption statement states that we have £69, 461 to pay still.
So 150,000 minus 69,461 is 80, 539. My share would be roughly £34,000 (85 %). I don't think early redemption fee was taken into account.
Here is my dillema. Select partnership is trying to have me and my wife on a second mortgagage that would ran alongside our current one. The proposal was I would be paying 50 % of the 836 which is 418 monthly for 17 years! Presumably from a lender with zillion interest! That is 5 years after we would have comnpleted our mortgage. A staggering £85, 272. I don't know what to do. I don't know what options I have. It seems that a remortage is not possible hence this is the solution Select partnership is puttting on the table. Is this solution called the third party sum equivalent? A loan to pay off the amount of equity I need to put into the final payment?
If you have pre 2014 terms then they cannot force a secured loan on you -- the choices are remortgage or extend.
Aperture have a way or re-interpretting terms away from the original intentions when they were drawn up and under which they have operated for years. I would not put it past them to re-interpret "Third party funds" to include a secured loan, however, this was not the intended meaning --- demonstrated by the fact that they had to specifically introduce secured lending as an option in 2014, which they would not have needed to do if it was already covered. Up to now, though, they have never forced the issue and Select generally introduce the option as a voluntary choice as it does suit some.
I don't know what agreement you have with A2, but many co-ownership arrangements forbid the occupying party from raising secured lending anyway -- worth checking.
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