Good morning, my wife has been in an IVA for 2 years, I’m not directly affected. We have a joint Mortgage. My question is can they ask her to take out a loan against our home without my consent? I haven’t signed any documents personally. This has never been my debt.
She would .... should .... be unable to take out secured finance without your consent and this should have been explored at the outset.
There are several possible outcomes if you withold consent:
They accept that there can be no equity release and extend the IVA by 12 months (which, at the moment, would be the most likely outcome, even if you did consent, although some secured lending had started to become possible prior to the covid outbreak and it's financial burdens on the economy).
They fail the IVA for non-compliance and your wife is back to square one with creditors able to chase her again. A bit harsh as they failed to explore the equity position in the first place.
She is pursued for bankruptcy, which could see the house sold from under you both. Again, a bit harsh and the least likely option as creditors do not usually fare very well with BR, in the long run, as compared to an IVA.
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