Increasingly worried that I will have to take out a secured loan

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barassic
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by barassic » Sun Oct 29, 2017 7:09 pm
Hi , becoming increasingly worried that I will have to take out a secured loan if I can't remortgage at month 54. My IVA is a PCIVA. my contract says that six months prior to expiry of IVA I will attempt to release the net worth in my home by way of remortgage. If I can't obtain a mortgage my supervisors have the discretion to accept one of the following. 1 a third party sum equivalent to 85% of the value of my interest in the property or 2 up to 12 additional payments limited to the 85% of interest in property. Can anyone advise if I would be made to go down the secured loan route please.
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Foggy
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by Foggy » Sun Oct 29, 2017 7:32 pm
No -- your Protocol version seems to be pre 2014 and they cannot force secured lending on you. The likely alternative will be the 12 months extension if the clause gets triggered. Bear in mind, however, that if by any slim change you do manage to get a remortgage accepted, look at the secured loan as well, as this would probably work out far cheaper.
barassic
Posts: 15
by barassic » Sun Oct 29, 2017 7:44 pm
Hi Foggy , thank you for your quick reply. My proposal says that the voluntary arrangement complies with the Straightforward Consumer IVA Protocol ( 2014 version ) and the standard conditions issued in November 2013 apply. Is this what you were saying ? Thanks again.
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Foggy
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by Foggy » Sun Oct 29, 2017 7:50 pm
barassic wrote:
Hi Foggy , thank you for your quick reply. My proposal says that the voluntary arrangement complies with the Straightforward Consumer IVA Protocol ( 2014 version ) and the standard conditions issued in November 2013 apply. Is this what you were saying ? Thanks again.


Yes, the secured lending option was introduced after 2014, but not all IP's use the later versions. They can only force secured lending when it is included as one of the discretionary alternatives, which, in your case, it isn't.
barassic
Posts: 15
by barassic » Sun Oct 29, 2017 7:55 pm
Foggy wrote:
barassic wrote:
Hi Foggy , thank you for your quick reply. My proposal says that the voluntary arrangement complies with the Straightforward Consumer IVA Protocol ( 2014 version ) and the standard conditions issued in November 2013 apply. Is this what you were saying ? Thanks again.


Yes, the secured lending option was introduced after 2014, but not all IP's use the later versions. They can only force secured lending when it is included as one of the discretionary alternatives, which, in your case, it isn't.



Thank you so much Foggy . With my IVA starting in 2014 I assumed that I would fall into the secured loan category. Thanks again.
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