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Adam Davies

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Post by Adam Davies » Sun Sep 19, 2010 4:16 pm
Hi
Good news regarding Halifax, and this will encourage others who are in IVAs or considering an IVA with fixed rates coming to an end. It looks as if there is no problem securing a new fixed rate as long as you do not want extra funds and stick with your existing provider
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Andam Davies
 
 

terminator

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Post by terminator » Fri Jan 14, 2011 5:25 pm
Hi,
I am looking to enter into an IVA also and am currently with the Halifax and I have a few questions which may or may not be able to be answered but hear goes:-

1) Will they be informed (I am thinking yes from reading on here) and if so what impact does that have on our relationship (note, I have been with them for 15+yrs and never missed a payment) ?

2) If 1 or 2yrs into IVA I wanted to move house, would I be unable to borrow more money ? Would I be able to move at all even with the existing borrowing I have (and stay with Halifax I mean) ?

3) After IVA ended (+1yr), would they be looking at me in the same light or would I be forever tarnished and if I wanted to borrow more money then (subject to usual lending criteria), would they entertain that ?

Opinions welcomed.

Thanks
 
 

kallis3

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Post by kallis3 » Fri Jan 14, 2011 5:28 pm
Hi and welcome.

Yes, your mortgage company will be informed but there shouldn't be a problem if you keep up with your payments.

It is highly unlikely that you would be able to remortgage during an IVA and you would need the permission of your creditors. You can't sell your house without notifying your IP.

Your IVA will remain on your record for a period of six years from acceptance. After that you can rebuild your credit record and there is nothing to stop you from applying for a mortgage in the future.

Have a word with an expert. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice.
Sharing from experiences of dealing with debt
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Broke of London

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Post by Broke of London » Fri Jan 14, 2011 6:09 pm
Hi - don't let not being able to move or remortgage put you off entering an iva. As you are considering it, even if you have a perfect credit rating, you will likely be considered as too over-leveraged already. I believe any borrowing over £15k prejudices a mortgage application. If there is equity in your property, a % is offered to creditors. So the profit in your house isn't really yours anymore once you enter an iva, so creditors would not be happy to sanction new borrowing to fund a move when the equity could be lost or eaten up in costs.

One of the professionals will need to advise properly because the issue of property and equity in an iva is always quite complex.

My ip told me that an iva is to repay your debts not improve your quality of life...I always bear this in mind when asking for anything.
 
 

Broke of London

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Post by Broke of London » Fri Jan 14, 2011 6:12 pm
Hi - don't let not being able to move or remortgage put you off entering an iva. As you are considering it, even if you have a perfect credit rating, you will likely be considered as too over-leveraged already. I believe any borrowing over £15k prejudices a mortgage application. If there is equity in your property, a % is offered to creditors. So the profit in your house isn't really yours anymore once you enter an iva, so creditors would not be happy to sanction new borrowing to fund a move when the equity could be lost or eaten up in costs.

One of the professionals will need to advise properly because the issue of property and equity in an iva is always quite complex.

My ip told me that an iva is to repay your debts not improve your quality of life...I always bear this in mind when asking for anything.
 
 

terminator

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Post by terminator » Fri Jan 14, 2011 7:44 pm
Thanks all for comments.
One last thing. If I have a house which has mortgage of £200k and is worth £380k (joint mortgage so only my portion is valid I believe), can they force me to sell or anything like that ?
 
 

leaKybrain

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Post by leaKybrain » Fri Jan 14, 2011 9:56 pm
In an IVA you do not need to sell your house at all, the equity clause is for when your IVA is coming up to its 5th year and in order to return a better dividend toyour creditors you are asked to get a valuation on your property and if

the 85% LTV on your property shows more than £5k equity you will be asked to try and release it to pay in to the IVA. Thre is a very real chance you won't be able to get further lender and so the IVA would continue for a further year. However if there is no equity in your property at that time the IVA will conclude at the five year stage.

Don't let it put you off doing an IVA. Most of us that have property are in the same position regardless of house worth.

HTH
 
 

terminator

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Post by terminator » Fri Jan 14, 2011 10:11 pm
Thank you all for your comments....you are starting to put my mind at ease through what is a scary process.
 
 

Foggy

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Post by Foggy » Fri Jan 14, 2011 10:16 pm
What you might have to cover in terms of equity (most likely another years payments) is, in most cases, far less than the original debt. More importantly, you are protected while in the IVA and will find that you can actually sleep nights and enjoy the days once more.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Broke of London

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Post by Broke of London » Sat Jan 15, 2011 12:42 am
Hi - my phone looks as if it has been playing up today so sorry for all the duplicate posts littered about the forum! You will not be forced to sell your property unless you agree to this in your proposal or following the creditors' meeting - and it seems to be a very rare modification. In the event you cannot remortgage, standard procedure is an extra 12 payments in lieu of equity. It's all a bit scary and sometimes you don't know what you don't know so can't even ask all the questions. Trawl the forum if you haven't already for a few ideas about what might crop up or go wrong during the iva and compare your clauses to those other posters have (some firms are cagey about what is and is not allowed). In spite of the downsides, an iva is the best decision I have ever made and it's given me back my life and my future.
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