IP are saying I have to release equity but I can't remortgage

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tracey171
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by tracey171 » Wed May 09, 2018 11:06 am
Hi I am in my last 4 months of my IVA. I am unable to re mortgage due to no one accepting me, but my IP has said I still need to find a way to release equity in my home. Are they able to do this as I took the IVA out in 2013 and it doesn't say anything about it in the contract?
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Foggy
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by Foggy » Wed May 09, 2018 11:37 am
It will say what the options are in the proposal, in the same set of clauses that say you have to release equity, usually a 12 month extension. Might I ask who you are with ?
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tracey171
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by tracey171 » Wed May 09, 2018 12:07 pm
Foggy wrote:
It will say what the options are in the proposal, in the same set of clauses that say you have to release equity, usually a 12 month extension. Might I ask who you are with ?

Hi Foggy I am with Wilson Fields. This is what it says word for word. ( If we are unable to release the equity by way of remortgage we will continue monthly contributions for a maximum of 12 months in lieu of equity.
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Foggy
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by Foggy » Wed May 09, 2018 12:32 pm
tracey171 wrote:
Foggy wrote:
It will say what the options are in the proposal, in the same set of clauses that say you have to release equity, usually a 12 month extension. Might I ask who you are with ?

Hi Foggy I am with Wilson Fields. This is what it says word for word. ( If we are unable to release the equity by way of remortgage we will continue monthly contributions for a maximum of 12 months in lieu of equity.



There you go --- you cannot release equity, therefore you pay an extra 12 months contributions instead ( at the same level as current payments ).
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tracey171
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by tracey171 » Wed May 09, 2018 12:38 pm
Am I able to go back to them and decline equity release through a further loan then?
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kallis3
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by kallis3 » Wed May 09, 2018 12:50 pm
I agree - they cannot make you take out a further loan,
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MerlinL14
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by MerlinL14 » Wed May 09, 2018 12:54 pm
Don't be pressured into taking out a secured loan to pay equity, unless the terms and rates are favourable to you. Paying an extra 12 months may well be the way forward and the least expensive.
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tracey171
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by tracey171 » Wed May 09, 2018 12:59 pm
Thanks Kallis
I have also been told that the terminology for equity release didn't change until 2014 when they put in that equity could be released a number of ways. Is this correct?
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tracey171
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by tracey171 » Wed May 09, 2018 1:01 pm
Hi Merlin.

If it doesn't say in the contract I have to release it any other way then I will refuse. I can't understand why you would want more debt when this was to sort it in the first place.
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kallis3
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by kallis3 » Wed May 09, 2018 1:14 pm
If it doesn't say it in your original paperwork you don't have to do it.
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tracey171
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by tracey171 » Wed May 09, 2018 1:17 pm
Thank you for your help that is what I thought.
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Foggy
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by Foggy » Wed May 09, 2018 4:04 pm
You are correct -- a secured loan and a remortgage are different things. They changed the terms after 2014 to add in a secured loan option (but many IP's still do not use it). Your terms are remortgage or extend ... end of.
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tracey171
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by tracey171 » Thu May 10, 2018 7:16 am
Thank you at least I can go back and decline the refinance of a loan and carry on for a further 12 months.
Thank you for your help.
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abbiesmum2003
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by abbiesmum2003 » Thu May 10, 2018 4:21 pm
Just to put another side on it, we are in same situation and also on the old terms however we have agreed a secured loan although not in our T&C's as means iva ends sooner and we are not tied into the clauses for a further 12 months.
We have halved our outgoing payment and can also earn more, change jobs, get overtime, win the lottery and keep any future inheritance.
For us it feels like a release so although a loan is not in you t&cs it has seemed a 'better' route for us. We have released equity and will be free from the rigidness of the iva.
(not yet been agreed by creditors so fingers crossed we will be!!!) Just a thought.
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Foggy
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by Foggy » Thu May 10, 2018 4:50 pm
abbiesmum2003 wrote:
Just to put another side on it, we are in same situation and also on the old terms however we have agreed a secured loan although not in our T&C's as means iva ends sooner and we are not tied into the clauses for a further 12 months.
We have halved our outgoing payment and can also earn more, change jobs, get overtime, win the lottery and keep any future inheritance.
For us it feels like a release so although a loan is not in you t&cs it has seemed a 'better' route for us. We have released equity and will be free from the rigidness of the iva.
(not yet been agreed by creditors so fingers crossed we will be!!!) Just a thought.


These loans don't suit all circumstances, but it is certainly worth getting the figures just to be fully informed and some firms treat these differently in that some want the amount that a regular remiortgage would have brought ( and this can be expensive) and some do an "early release" version (such as Select offer to Aperture clients), which can work out beneficial.
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