Me and my wife entered an IVA in July 2010 with Blair Endersby and we were told and it was documented that the equity release clause towards the end of year 5 only applied if we had less than 85% LTV.
We recently had a valuation as per the agreement which was 235,000 and our mortgage was 209,000 so our LTV was around 90% so we assumed there was no equity to release and the IVA would end in July this year.
However, our IVA was transferred to Grant Thornton around 2011 and we were asked to agree to this but were told that this was in our interests as their terms were more flexible.
However, we have been told by GT now that their rules under the IVA protocol is that we need to release up to 85% of the equity in the property so have been told to try to raise around £14,000.
I feel that this important change should have been brought specifically to our attention as although it is in their terms and conditions which I have only just found. I would have thought that this should have been discussed with us as this clearly is disadvantageous compared to the previous arrangement.
We were just told that it was in our interests to agree because it was more flexible and was of benefit, the disadvantages were not brought to our attention. I think is grounds for a complaint eventually to the FOS.
Can anyone advise on this and is this GT equity clause that they are relying on normal?
I have heard of others who gave had equity calculated this way.
As harsh as it may sound, it's really important to read all the small print and not just listen to the sales patter. Not helpful for you,sorry, but hopefully helpful to others.
GT have started to calculate equity in this fashion and are even trying to force this upon clients who did not agree to the changes.
As things stand you are bound by the agreement you signed. Personally, I feel a complaint is worth a shot as I do feel people were bamboozled into these changes. Whether it will run is another matter.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
