Please tell me this is a mistake - payment 72 has just left my bank - I had a 60 month IVA and at month 54 the equity release clause kicked in - I got rejected from. 3 high street banks and have now paid an extra 12 months as defined in my terms and conditions in lieu of equity . Today I received a letter from IVA company advising me that they have referred me to select paternership in view of equity release and that my IVA cannot conclude until I have co operated with them re equity release??? This bit of my IVA has been addressed is this a mistake as I am at month 72 - I was just preparing for final review not equity release ?? I feel queasy that I can possiblely be made to address this Clause again though I can't see how ? It's been addressed - any experience ? Advice ?
Yes this was definately the reason it was extended - the original IVA term was 60 months , 72 now completed I expected this to happen anyway as I had More than £5000 equity so I had 5 X mortgage rejections 3 of which I submitted and I have the letter accepting these rejections and therefore adding on 12 extra payments - all done in the 5th year as stated in in my terms so I expect it is an error as I have checked the terms again and follow g the extra 12 month payment my property is now excluded from the IVA - I was just a little confused when I recieved the letter but apart from my name it was very generic so I assume it has been generated by a search - sent me into a slight tailspin Saturday though
You are right to be concerned, I was in a similar situation to you. I was contacted by the Select Partnership who are basically an agency for 'loan shark wan$%£"**! ' and pay day loan type people (scum of the earth).
They will want you to get a 'kneecap breaking' loan secured on your property for like 20% interest or more! And you will find that £3000 - £4000 at least will go towards juicy 'kick backs' and commissions for various scumbags ( Aperture and Select). My advice is to run a mile and them that your equity obligations have already been addressed. Oh, and by the way don't let them tell you that a 'secured loan' is the same as a 're-mortgage' because it isn't.
A re-mortgage..... RE-PLACES the current mortgage. Its not a secured scamming scumbag loan from a loan shark.
This what happened to me:
I was in an IVA with Debt Free Direct (the biggest con artists to walk the planet) , and 6 months from the end of the IVA (month 66 in my case due to Northern Rock being a creditor), I phoned DFD up 5to find out about the equity release.
(My IVA states a RE-mortgage must be obtained in the final 6 months blah blah blah..
So DFD tells me " Don't worry Mr Bloggs, we will look into that and be in touch.... blah blah.
So at month 71, I get a letter and a phone call from the Select Partnership who try to sell me an £8000 over 15 years !!! loan of which only £6000 would go into my IVA!. I told them to jump out an aeroplane without a parachute.
So in the end it took 6 months for them to agree to extend the IVA for a further 12 months.(costing me £3000).
I suggest you put in a formal complaint to them giving them 14 working days to reply followed by a complaint to the Insolvency Service. ( Trust me, your IVA company won't reply because they have already had all of your money and they are looking for the next mug new customer.
Juju888 -- I appreciate that you are upset at the way your IVA equity release was handled, but would ask that you refrain from such disrespect. Select also know the difference between a secured loan and a remortgage. They also interpret the clause correctly (and, incidentaly, in a far fairer fashion than Aperture did before they handed that role to Select). They offer the option of the secured loan, but are aware that you are not bound to accept --- however, for some the opton works out and the debtors can make an informed choice.
Personally, I do not agree with the secured loan option, but, as I say, for some who have posted their experience on here, it works.
Anyway, please --- the forum ethos is "respect for all".
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
Agree Foggy - we are all individuals and as such able to make our own decisions.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Juju I also appreciate that your IVA may not have run as you expected and it's a shame that you have not referred to this forum before, as it is often a great resource for many people. I can assure you that we are a bona fide company, established over 27 years, and act in accordance with both FCA regulations and the IVA protocol. Any solutions we propose are in the best interests of clients and therefore, where we believe that a second charge option is more suitable to a customer we will recommend it. All lenders we deal with are carefully selected and appropriate due diligence conducted on them. It is true however that, on occasions where the amount of equity able to be released is limited by 50% of the IVA contribution, that a higher rate is actually more advantageous to a client because it reduces the amount of equity being released. In Dawn's situation I am merely seeking to assist her to short-cut to confirmation that equity release is no longer required.
Gosh juju I don't think I am in the same situation as you were at all - I won't be making a complaint I have nothing to complain about - I believe a generic letter has been sent to me in a situation it doesn't apply however easily sorted and I am grateful to Shaun for the offer. There was a time I would have snapped your hand off for a remortgage as I was applying for a job I had to declare my IVA and I was desperate for it not to affect my chances ( it didn't I declared the IVA and I got the job ) but that time has gone my property has been addressed and secured loan has never been mentioned -!f I ever do require a mortgage or loan in the future I may very well consider contacting Shaun as he does seem very well respected on here. Ps I am sorry for the distress you suffered in your IVA - it is no doubt a tense and stressful time