Select Partnership wish to make it a secured loan

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ray739
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by ray739 » Mon Sep 18, 2017 12:27 pm
I'm in an IVA and in the fourth year and know that I will be approached to find equity in the property. The company that the administration use is Select Partnership who wish to make it a secured loan. I do not wish to have any secured loans. Is it legal for Select Partnership to attempt this as I attempt a re-mortgage.
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Foggy
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by Foggy » Mon Sep 18, 2017 12:30 pm
If your proposal says attempt to remortgage than that is all you need do -- a secured loan is not the same thing and cannot be forcd on you. However, later proposals do have secured loan as an option and some have ambiguous wording.
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kallis3
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by kallis3 » Mon Sep 18, 2017 1:47 pm
As Foggy says - you don't have to take one but check what your paperwork says.
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Michael Peoples
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by Michael Peoples » Mon Sep 18, 2017 2:26 pm
It is also possible that you qualify for a remortgage but a secured loan works out cheaper. If this is the case you could refuse to take a secured loan but be obliged to take a remortgage with a larger overall cost and possible extension to the term. You could have a word with your IP to see what your obligations are as the secured loan may be better. Bear in mind too that once six years have passed from the date the IVA was proposed you may be able to refinance everything to the High Street son the secured loan may only be a temporary measure to close the IVA.
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Foggy
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by Foggy » Mon Sep 18, 2017 3:16 pm
Thinking on this ... it could also be the case that Select are offering a secured loan to cover the 12 month extension, allowing you to exit early, rather than the loan being equity release. What figures are they talking ?
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