Remortgage concerns

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nicki879

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Post by nicki879 » Sun Aug 16, 2020 4:30 pm
I have 12 months left of my initial IVA period. I've just been contacted by a specialist mortgage broker who has been appointed by my IVA company. Isn't this a bit soon? Also, I'm really worried that I'm going to end up locked into a high interest rate for the rest of my life, my husband is also a bit annoyed as its my IVA but obviously will affect him financially. I'm so scared that what we assumed would be over and done with within 5 years will now have a much longer financial implications. I'm not naive, I know there would be a period of time that it would still affect my finances but what happened to pay your debts for 4 years and then have the rest written off??

kallis3

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Post by kallis3 » Sun Aug 16, 2020 5:01 pm
If you own your own house the chances are that you will have to remortgage or take out a secured loan. Have you had your house valued to see if you have any equity? The other option is that your IVA is extended for 12 months in lieu of any equity.

Who is your IVA provider and who is the company they have recommended to you?

Your husband will already be linked to you.
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.
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Foggy

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Post by Foggy » Sun Aug 16, 2020 5:26 pm
First have a read here: https://www.gov.uk/government/publicati ... a-protocol ... specifically the last sections.

Currently you are likely to have the extension applied, under this guidance, rather than a remortgage, although if it is Select dealing they may have alternatives for you to consider.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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nicki879

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Post by nicki879 » Sun Aug 16, 2020 5:44 pm
We've definately got enough equity for them to enact that clause. An i within my rights to say that I want to extend by 12 months then? I would prefer that option as it affects the household the least as its just me continuing with payments. As my original end date isn't until August 2021, I wonder if they'd change their mind depending on whether we are still in a pandemic?

kallis3

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Post by kallis3 » Sun Aug 16, 2020 5:57 pm
I doubt the pandemic will make a difference to them. You do not have to take out a secured loan suggested by them.
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

nicki879

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Post by nicki879 » Sun Aug 16, 2020 6:32 pm
That's good to know, thank you. So, under the current pandemic guidance, I don't have to agree to release equity and I don't have to accept a SL? In which case I can take the option to pay an extra 12 months?

Foggy

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Post by Foggy » Sun Aug 16, 2020 6:39 pm
Section 3, para 1.12:

1.12 No attempt should be made to realise a consumer’s home equity under paragraph 9 of the protocol during the pandemic unless the consumer agrees to proceed. The supervisor will retain the discretion to extend the IVA for up to 12 months in order to allow the consumer to complete their IVA. Voluntary release of equity can continue to be included in new proposals.

The period for which this guidance applies will commence on 20 April 2020 and continue until 20 October 2020, the guidance will be regularly reviewed by the IVA Standing Committee during this period and may be extended past the date above or be removed before that date. I have trawled for info, but have found no mention of either an extension or cancellation. So, currently, you are allowed to ask for the extension to be applied instead of re-financing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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nicki879

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Post by nicki879 » Sun Aug 16, 2020 6:41 pm
Thank you, that's really helpful. Although my original end date is not until August 2021 so they could probably still enforce it, I'm guessing.

Foggy

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Post by Foggy » Sun Aug 16, 2020 7:14 pm
Sun Aug 16, 2020 6:41 pmnicki879 wrote:
Thank you, that's really helpful. Although my original end date is not until August 2021 so they could probably still enforce it, I'm guessing.
They could delay it -- but have already started the process, it seems.
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
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