I have entered the equity release phase of my IVA and have submitted the house valuation, mortgage redemption statement and two letters (one from my lender and the other a mortgage broker) confirming I am unable to re-mortgage.
Today I received a letter stating my case had been referred to a specialist broker as the IVA company assessed that a re-mortgage was possible.
I've checked my IVA conditions and all it says the IVA practitioner has the discretion to do is see if I am able to secure a third party sum equivalent to 85%, etc or look at additional 12 monthly payments. There is no mention of having to use a specialist broker provided by the IVA practitioner.
Are they allowed to do this?
Yes they are --- the agreement says if you can remortgage you will. It does not limit who the remortgage is to come from. If you are on pre 2014 terms they cannot force a secured loan (as opposed to a remortgage), but it does sometimes work out better than a whole remortgage at high rates.
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