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.
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.
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