2014 protocol secured loan

[Chrisdn88]

Hi regarding the new 2014 protocol and equity release, does the 85% LTV still count, with the secured loan part. I mean if you were to re-mortgage it would be 85% LTV so would the secured loan part be the same. It couldn't be a higher LTV could it?

[mole]

yes that is correct, the 85% LTV still applies

[Chrisdn88]

Thanks Mole,that's reassuring as i signed the new protocol before finding the forum. I was worrying with 11 months to go.

[Michael Peoples]

The secured loans are only available up to 70-75% LTV anyway so the question is moot. It will be a long time and possibly never before a product is available for people in IVAs at a LTV in excess of 85%.

[Chrisdn88]

Thanks Michael, so would the secured loan part only really come in to play if you had a large amount of equity at the end.

[Michael Peoples]

Pretty much. Even then affordability comes into play as does age and other factors so just having the equity is not enough. It seems only a small number of those in IVAs even meet the full criteria for a secured loan so a certain amount of the hysteria surrounding them is misplaced.

[Shaun Vickery]

Michael's correct, any remortgage or secured loan is highly regulated by the providers themselves, irrespective of the provisions of your IVA. Therefore the amount of equity you can release will depend on all of the factors he describes. Products of this type are increasing in the percentage of the value of the property they will lend to however so, depending on your circumstances and if you do have equity, it's often worth considering dealing with the equity release clause early and making an offer to your creditors to settle in 'Full and Final'.