Hi I have just finished my 5th year of my IVA and the IVA company are trying to release equity from my house through a company called select. They have offered me a second charge mortgage loan of £6000 but working the figures out I will be paying £22000 back.. Do I have accept this????….. I am willing to extend my IVA by another year but feel like if I don't accept this loan my IVA will fail. Also I have just done my annual review and I have earned a more than and I first declared. Can this cause my IVA to fail even after 5 years????
If you have pre-2014 terms they cannot force a secured loan on you. If you have post 2014 terms they might be able to. Select routinely offer secured loans, if available, even if you are not obliged to accept, as some people actually prefer them to an extension and are informed of the possibility. I would speak to Select, who are far more helpful than Aperture or Creditfix, and ask them if the secured loan is mandatory or merely a suggestion.
Often a secured loan, at this stage, due to your credit record, is expensive --- but the longer term plan is for you to re-finance at high street rates once your files clear up (6 years after the start of the IVA). Speak to Select about this aspect too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Lee, if you'd like to message me privately (you can do this by clicking on my profile in the 'experts' section on the left of this page) I can have a look into this as it applies to your individual circumstances and along the lines Foggy mentions.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Oh -- and regarding the undeclared income, which, I assume has now come to light .. Aperture will advise of any sums outstanding. Whether this will be required as a lump sum, or increased payments going forward will depend on whether you do get an extension or not.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In regards to Select...they are a legit company and found them to be very helpful.
We had iva and didnt NEED to do a secured loan to release equity but we did as better option than a remortgage for us.
Yes if you look at the full term of a loan then it would look to be a significant portion more than what you are releasing, however you dont have to stay commited to that and when you are able to you may want to move house etc in which case that loan would be paid off as part of the sale.
We did a SL to end our iva and meet the clause for equity release and ifwe looked at the fill repayment after 20+ years it was thousands-but we are trying to move house so have only actually paid it for just over the year then will pay it off when we eventually move.
It emded our IVA and released us from that watchful eye on our spending and earming.
Its not such a bad thing but talk through your options with Select. Pros and cons of all options available to you.
