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by Slekclarke » Fri Jun 15, 2018 10:24 am
Very confused on what to do...

My IVA started in June 2013, so this in my firth year, my IVA states 'remortgage' as it was before the 2014 IVA protocol. I applied for two online re-mortages and sent the evidence to Aperture, who replied with a letter advising that they had set the 6-year rule and my last IVA payment was due on 30th October 2019.

A month later, I then received a letter of the Select Partnership to advise Aperture was using them to do an independent review! I spoke to a representative at Select last night and we went through all the basic stuff, wages, outstanding mortgage etc. To begin with I was eager to speak to them as the thought of finishing my IVA a year early and be better off financially excited me, however, I am concerned about the following points:

• He spoke about a second charge mortgage (Loan), when asked what sort of interest rates this could be he said 18% would be the highest!!
• Because I already have £8,800 as a secured loan with my existing mortgage company ‘Halifax’ he said that this would probably need to be paid off with the new second charge loan, as you can’t have two!
• This would mean I would need to borrow approx. £19,000 to complete the IVA and another £8,800 to pay off existing loan, I have calculated this at 18% and for loan of £27k I would pay back £84k over 15 years. With a repayment of £450 a month!! If you take out the £94 I pay on my existing loan this would mean an extra £356 a month which is just half of what I am paying on the IVA now (£716)!

The representative whom I spoke to, advised me to look at this as a stepping stone and although the rates are high now, I could re-mortgage in year or so times for a cheaper rate. But this isn’t guaranteed and circumstances can change and I don’t want to be stuck with an extra £356 a month to pay for next 15 years, I would rather just carry on paying the £716 until October next year.

So, my question is, can I refuse any second charge loans? He seemed confident he would be able to find a lender, but I am sure he can at those rates!!!

Anyone else been in this boat, what did you do?

I am going to speak to Aperture at lunch to see what their thoughts are on it.

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by Foggy » Fri Jun 15, 2018 10:37 am
I would say that you can refuse these "offers". Apart from the fact that they are secured loans and not the agreed remortgage, I would argue that Aperture hav already had a bite at the equity cherry and the matter has been dealt with, as per the agreed terms, and cannot be revisited.

I am hopeful that this exercise is only advisory, to give you further options, and not to force your hand.
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