Hi there. I have my 71st and 72nd payments to make until my IVA should conclude. At the end of year 5 I couldn't release any equity so that's why I naturally sent in to 6th year as per the terms. Today I get a letter to be referred/speak to The Select Partnership about releasing equity even though my current lender (was Northern rock now Landmark mortgages) don't do mortgages and a new potential lender refused. I've never missed a payment and was told verbally by my IVA provider, Aperture, that it was very unlikely I'd get a remortgage and not to worry and just complete the 72nd payment and wait for the conclusion.
My question is, dues this sound right and fair this late on in the IVA or are they so snowed under to ask for this in the last 6 months of the 6th year? In previous years I've asked if the possibility of equity release ( of which there was/is some) but I've been told it wouldn't be possible. We pay 75%/ interest only 25% repayment on our mortgage, we have a secured loan and I'm the sole person in the IVA.
I suspect, although you state a 5 year IVA, that you are actually at the end of the term of a 6 year IVA (Northern Rock generally amend the term to 6 years from the start, with the extra 12 months for equity possible on top) and about to enter the equity release scenario --- which Select will look at. The upshot could be a further 12 months payments, if they cannot find a remortgage for you. They may also be able to source a secured loan, which you are not obliged to take, but, in some cases, this has worked out better for the debtor --- it will all depend on the figures.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi foggy and thanks for reply. I'm a little confused - sorry. The original I've through DFD was for 5 years with the option of the 6th year if no equity could be released. I'm now 2 payments away from the end of the 6th year so I get they'll look at the equity again if which there is a reasonable amount now. What I'm not sure about is how much more they can move the goal posts as I've tried umpteen times with now Aperture about F+F's but they say just pay the 6th year as that will conclude the IVA. I'm worried that although I've got equity that I'll be remortgaged and end up paying more than I am now or if that's even allowed. It just throws up more worrying scenarios for me when I thought 2 more payments and I'd be done after 6 years.
Hi foggy. To be honest, Aperture have been poor in correspondence. They never formally told me about going into the 6th year, I just drifted into it following a phone call. Equity was mentioned but never addressed formally then though I asked in years 3,4 + 5 about releasing some to maybe offer the f+f settlement and I asked about raising an amount to finish early if possible. They always verbally told me to wait until end of year 5 and then possibly go in to year 6 of payments. The original IVA proposal, from memory of looking at it just before year 5 and the equity bit, was for 5 years with the potential for year 6 payments if no equity release do like you say, I believe I shouldn't have to look at this as an option, risky as I'm 6 weeks away from the end of 6 years of paying. I'm under the impression I can now look at starting a fresh again and this has really rocked me
OK -- so .... the equity position has to be formalloked at, as per the original agreement, which is what they are proposimng now -- albeit a year late !!! They have been remiss in their carrying out proper and timely supervision and, as such, should be more helpful in getting things straightened out. Best case scenario is that they(formally) decide that the 12 month extension kicked in and, therefore you only have that couple of payments to make --- hopefully that is what will happen.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your help foggy. Yeah, I hope so mate. DFD were slow but since Aperture took my case over the correspondence has been poor. I've had sporadic I+E requests, slow replies to queries and most ignored and everything done over the phone verbally with very little written stuff. For something so important their time keeping has been pretty casual. It makes me fear for completion certificate so I can move on. I'll speak with the Select Partnership on Tuesday and maybe they can shed some light on it and I'll get my original agreement out from DFD. Am I right in thinking that as I've got a joint mortgage but I'm the sole IVA that only half of the equity can be up for part release? Thanks for all your help foggy - Lee
Morning foggy. How you're well. Spoke with The Select Partnership yesterday. Basically they're at a loss as to why I've been asked for equity release 6 weeks before the end of the 6th year of payments. They're speaking with Aperture (good luck with that I said) to see what's going on. The lady I spoke to was very understanding though very confused as to what's happening and understood the stress it's putting me under. I've emailed aperture too with copies of the original creditors meeting of 30/08/13 to show when all was agreed and started. Shocking really!! Thanks for your help, support and sound advice Foggy. I'll keep you posted as The Select Partnership don't seem to think they'll hear much from Aperture this week. If I've not heard by middle of August, do I cancel my standing order after the last (72nd) payment which is 27/08/19 or would you advise not to? Thanks mate - Lee
Hi. Regarding cancelling the SO -- you are a bit between a rock and a hard place. I always think it is easier to cancel and keep the money to one side, in case there is a valid reason that they should have had the payments (forgotten about payment break or arrears, for instance). If you make "extra" payments, they will be refunded eventually, but it will be like pulling teeth! BUT .. you have to be wary as three missed payments, if Aperture think, for whatever reason, that you should still be paying, could lead to a breach of the IVA ..... which you do not want!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Understood Foggy!! They've got me by my balls in effect then through their mismanagement of time lines. By the time I get to speak to someone who has any idea of what to do positively and decively one and for all with any power behind it will be after the end of August, I'm sure as if by magic. And that'll probably be the same for The Select Partnership in their luck with trying to get any decision out of Aperture. I just need and want to speak to someone who'll make a decision. Are there any other people who've gone over 6 years, in to a 7th when they've managed their side 100%? So frustrating but I felt it coming. Aperture asked to switch from SO to DD 6 months ago and that still hasn't happened and they have me a month to do that, which I did. Cheers Foggy
