Kizzy - without seeming rude - what is the interest rate you would expected to pay on this Loan? - and how does the amount per month compare to your monthly IVA payment?
I contacted the Mortgage company today who feel that the max they can offer me if £8k - between my husband and I we may be able to raise an additional 2K from our family - so we could potentially raise £10k.
I asked my IVA co if this would be acceptable and they have stated that they will now approach the creditors to ask if £10K F & F would be acceptable. If it is noy then we will refer back to the original agreement to pay an additional 12 months payment.
So the ball has started rolling......they mentioned that it could take a couple of months before we hear from them.
The interest rate that we are currently paying is 5.6% and the new re-mortgage would be 3.4% - so we should be better off all round if we can get the F & F accepted.
Thank you once again for all your advice and support.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It was thanks to the advice on here that I had the courage to ask them to offer the F & F (I felt as though I was forcing them to do something that they had encouraged me not to do!!)- so thank you to all of you for your advice. It may not come off but it is definitely worth a try.................
How far off the original dividend are you? 48 p in the pound sounds like a high payout.
I only ask because my initial minimum was 27 p in the pound, with my income going up the final was 33p per pound payout.
I wrote to my IP in the last year explaining although I had some equity in the current Market it would not be possible to release it and a couple of companies had rejected me for a remortgage. I expected to be asked to do an additional 12 months but the IP said no i didnt need to and completed my IVA in five years. I might have been lucky. I do think asking for the extra payments and equity release is very cheeky. Has there been a particular reason for not meeting the minimum dividend? Maybe an expert can advise before you accept anything detrimental to you.
"Just when you think that you can make ends meet, somebody moves the ends."
Hi Mattyboy, the original dividend was 40p - when the creditors claims came in the amount owed was not as much as first anticipated plus I managed to get a much better job that increased the monthly payments from £750 to £1,200.
We were supposed to try to release equity in year 4 but at that time, although we were able to find a company that could offer us a re-mortagage, it was on condition that IVA was completed in full and the IVA company said that this would not be acceptable to the creditors - we could introduce the equity of £9k but they wanted us to pay another 15 months of payments @£750 pm.
They then suggested that they arrange a variation meeting and amend the 4 year equity release clause to a 5 year one - in addition they originally wanted us to raise £21K by re-mortagage but scrapped that clause and then stated that the minimum divided would change from 40p to 48p (due to the additional payments made over the term). This was accepted by the creditors.
So we almost at the end of year 5, the same company can offer us a £8k re-mortgage but by introducing that amount alone we would not quite meet the minimum dividend - more like 45p.
The IVA Co then said that if we were able to raise £5k by re-mortgage but then pay an additional 12 months at £750 (our original agreed monthly payment) then that would give us enough money in the pot to achieve 48p dividend and they would not have to approach the creditors for a variation meeting. However, the remortgage is conditional on the IVA being completed on release of their funds - back to the same scenario as last year!!
I have now countered that and asked them to ask the creditors if they would accept a F & F of £10k - 8k from re-mortgage and £2k clawed together from family & tiny amount of savings we have tucked away.
So we will wait & see.................if not we will carry on from another 12 months!
Good luck Kizzy.
I planned for 5 years, and nearly had to do six! ....It is a blow when you come all that way, then think, oh god...ive another year to do ;o(
I hope it works out for you...I learnt from my IVA its best if YOU can control your IVA in the direction you want it to go in, rather than the way your busy IP can be bothered to let it go in! (yes, theres lots of good IPs out there,and some a little less enthusiastic!)
