Secured loan
Hello, I feel this is a daft question but thought I’d ask anyway...
I am in an IVA.
My partner would like to take a secured loan out on our property for various things such as home improvements, and garden landscaping. His credit score isn’t great so a standard loan isn’t applicable.
We haven't got much equity but the example below could explain -
£15,000 total equity
£7,500 secured loan from my partners share (50%)
Is this possible? Or would my IVA mean this is not able to happen?
Not going to happen. Apart from the fact that your IP will object ( there will be a restriction on the property requiring his agreement), you will need to be a party to the loan, which is not allowed under the terms of the IVA and you will fail the credit check.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Mon Mar 29, 2021 1:27 pmFoggy wrote:
Not going to happen. Apart from the fact that your IP will object ( there will be a restriction on the property requiring his agreement), you will need to be a party to the loan, which is not allowed under the terms of the IVA and you will fail the credit check.
Thanks Foggy, I thought this would be the case. Thank you for getting back to me
I agree with Foggy. It's not possible for all the reasons he describes, besides which it is unlikely that you will find a lender to consider it. My advice would be to focus on dealing with the IVA first and then things will hopefully start to ease. Good luck.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
