Hello,
I am 3 years into my IVA with Stepchange and wish to consider my options. I have an equity release IVA and am paying £190 monthly. By my calculations there is approx £25k equity in my home. The driver for the F&F via secured loan is to enable me to move home in the future sooner (I need to be closer to aging parents). My expectation would be the secured loan would be paid off when I moved. I would ideally like to discuss my options with an impartial adviser but am not sure who to look to. Is it ethical to offer a F&F based on 12 month extension in lieu of remortgage so creditors get the monies they are expecting. I want to be pragmatic but am not sure if it would be cleaner to offer F&F by selling home but then worry about being homeless as my credit rating will not allow me to rent easily. Any advice appreciated.
1. Use third party funds to put forward a variation to offer say £5-6K based on the £6,840 of remaining contributions for 3 years.
2. Put forward a variation offer to sell the property and pay up to £6,840 from the sales proceeds. If the variation is not accepted you don't sell the house.
It's entirely ethical to propose a F&F offer to your creditors - after all, they don't have to accept it. We've looked after many clients in this way and very few reasonable offers are declined if they are dealt with correctly.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
