I don't think Anne has got a good deal, a secured loan for 15 years on top of her 5 year IVA ?
In retrospect she could have gone into a DMP paying the same amount for approx 12 years and be debt free [if interest and charges were stopped fairly early on]
True and I would be interested to know how much equity she had in 2007 because these loans are a maximum of 75% loan to value and property prices have dropped since 2007. Perhaps a remortgage or DMP may have been a better option at this time but without full facts of the IVA it is only speculation.
It also may be worth finding out if there are any exit or early redemption penalties on this loan which you will find on a sub prime mortgage. This would help determine how quickly the loan could be shifted to the High Street and also whether it is good or bad value.
I think like many of us Annie would of been swayed by the headline Debt Free in 5 Years.
I know when I took out my IVA I preffered the safety umbrella of an IVA and knowing I could at least guess within a year or two when I would be debt free instead of the uncertainty of frozen interest et al of a DMP.....obviously for some that may not now be the case.
I came into this world with nothing and still have most of it left!
Quite ridiculous rates and charges, and fifteen years[:0]!!!
How can anyone of sane mind defend such a con job???
I can only imagine how Annie must feel...
My concern is that these `loans` will be the norm by the time I approach the last year of my IVA, and having gone through my proposal I don`t think I can be forced down this road, but I`m awaiting clarification.
I certainly wasn`t told, or given any hint at anytime that this `avenue` of funding could be a possibility.
As I mentioned, I think I`m ok but await clarification.
Last edited by Goosed on Fri Jul 06, 2012 5:54 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
I'm not trying to be controversial or provocative - but realise my question may come across that way - I just don't understand not being a homeowner! Why is the thought of a secured loan causing uproar when everyone agreed to a remortgage? Aren't they the same thing in effect?
BOL, I was wondering the same myself! If the mortgage market hadn't changed so drastically then many people in IVAs would be remortgaging at high interest rates and still not be debt free after 5 / 6 years.
Exactly! Homeowners don't expect to be debt free post iva...only free of unsecured debt but with additional debt secured against their home. What's the diff whether a remortgage or a secured loan?
My "uproar" is purely down to adherence to the letter of the proposal .... as we are expected to obey it to the last letter, so should the creditors. If it is written that equity is to be release, if possible, by re-mortgage, and if unable to re-mortgage by extension .... then that should be that --- no changing goalposts by saying then it should be by loan -- that is NOT what was agreed.
If they akter the wording on NEW proposals so be it -- at least new IVA'ers will know what's coming...... but they cannot change existing agreements on a whim.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sadly the moral of this story is sell your house before entering an IVA as you get penalised due to 'perceived' equity that is not realisable in the current mainstream market in the hope that in the future you can get a better deal.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
I understand about adhering to the iva where the wording is explicitly remortgage or extend and my question wasn't related to that scenario. But lots of proposals aren't worded like that and in these cases why are people making a distinction between a remortgage (happy to do) and a secured loan (not happy).
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Broke of London
I understand about adhering to the iva where the wording is explicitly remortgage or extend and my question wasn't related to that scenario. But lots of proposals aren't worded like that and in these cases why are people making a distinction between a remortgage (happy to do) and a secured loan (not happy).
You are correct, in a rising house price market and fully working finance market, it makes no difference , but we aren't.
People are being expecting raise equity in a falling market for banks which quite frankly we've all pretty much had enough off.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
