Remortgage after 6 years of payments?

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barbara233
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by barbara233 » Sun May 06, 2018 4:47 am
We have been paying into an IVA for 5 1/2 years now and is due to end at the of year 6. It was 5 year plan plus 12 months extention and we have paid prompty on time. We have never missed a payment. Just recently, we received a letter from the IVA company requesting remortgage information and also equity in the house. We have submitted all yearly income requests etc and never defaulted Is it acceptable for IVA company to keep taking monthly payments in year 6 then request remortgage and equity information when the policy ends in 6 months. We have paid 6 months of the extra year, Is this normal procedure in the 6th and final few months of policy.
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bridgey
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by bridgey » Sun May 06, 2018 6:00 am
Are you sure you didn’t have a 6 year IVA with the equity clause; so 7nyears total?

Some Creditors (NRAM) amend the standard 5 to 6
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Foggy
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by Foggy » Sun May 06, 2018 8:50 am
If the base term was amended to 6 years at the initial creditors meeting (as sometimes happens, especially if NRAM are a creditor), then the term can be further extended for equity reasons. This investigation is carried out 6 months from the end of the base term, so sounds about right. It will all be in your proposal under "Equity Release" --- in there it will say month 54, but yours has been amended so everything will be a year out.
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barbara233
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by barbara233 » Sun May 06, 2018 11:41 am
Hi,
Thank you for replying. Our base term was 5 years, but stated when we took on the IVA, that we did not want the house to be affected in anyway (we are on interest only have still have to pay of 50% of the mortgage which runs out in 4 1/2 years) as we were struggling. We were told by IVA company that they would not touch the house but we would have to pay for another 12 months - taking it up to 6 years - then finished. 5 years ended back in November last year - we heard nothing from the IVA company until near end of February this year asking for the annual review of expenditure when only 9 months was left on policy (base policy 5 years finished, extended year started). Now in May we have received a letter that we would be in breach of contract if you do not provide them with current value of house to release equity and full mortgage statement. We have already paid for 6 months of the extra year asked to cover. We have 6 months of the 6th and last year of the policy, now we feel the IVA company is not keeping to the terms we asked for and agreed to. During this 5 year process - we were constantly HASSLED by a Law Firm that was given the contract to claim PPI from our numerous Credit cards. One threatening letter received from the Law Firm stated that there was a cheque due for 7K due from Barclaycard and if we cashed it we would be in breach of the IVA contract. Law firm was very threatening but they must have received a lot of PPI back which we do not know about the amounts. Is it still legal for the IVA company to hassle us after the 5th year finished - IVA company never contacted us before the 5th year ended - only for annual expenditure review. We received absolute no correspondence until this year into the 6th year. We have 6 months left into this extend 1 year to cover our request of not interferring with the house at all - to which we still owe a lot. As we did not hear from the IVA company before the end of 5th year - the policy smoothly continued into this 6th year until the first review letter late February this year. No correspondece until this extened 6th year from IVA company. Please advise, your help is very much appreciated.
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Foggy
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by Foggy » Sun May 06, 2018 8:06 pm
It looks like they are on auto pilot and implimenting what would have been standard terms. I assume the proposal stated that the house was excluded and the extra year was added in lieu. Whoever sent the letter (maybe computerised) hasn't read your individual paperwork. I would simply remind them.
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