www.iva.co.uk

Hi,
after a bit of advice, looks like i need to get a new car for work and am in an iva , 1 year left paying 1000 a month.
I have looked at specialist finance such as duncton but am struggling to use as my employer has very limited car restrictions ie age/mpg/warranty.
I have property (mortgage 145, value 170, equity 25) and have no equity release clause (as had to have property valued at beginnig of arrangement and agreed to pay 6k more instead so iva is 6 payments longer) can i get a secured loan on house to generate monet to buy car ? and if so can anyone recommend a good company to do so with

Hi Andy, I would not personnally advise getting a secured loan, we had one, it was the worst thing we ever did. Ended up having to sell house because payments increased and could not afford it, then when we sold house, we had been paying loan for 3 years had borrowed £40,000 and had to pay back £54,000 that was with first plus, a total nightmare. Have now been renting for 5 years and I have hated every minute of it, had some many problems I an desperate to get back on property ladder, but obviously unable to due to iva. Please think hard before doing this.

Hi Andy, I'm afraid I can't answer your query but know one of our professionals will be along very soon to do so. I hope it can be sorted for you. Have you taken any advice from your IP directly?

Hi, at the risk of sounding dense[:I] what does it have to do with your employer what type of car you opt for? If the car is for business use as well, can they not help re leasing?

Regards zim zim

I doubt very much if you would be able to get a secured loan, you would need your IP's permission firstly, and I doubt any finance company would lend you anything.

If Andy is in receipt of a car allowance paid by his employer, they have every right to dictate what he spends their money on. If not, then they may be less influential in the choice of car.

There is no harm in looking for a secured loan, but this sort of finance is not easily available these days and with an IVA on your record it will be even harder. So long as you can demonstrate that the payments will be affordable moving forward, the IP consent should not be reasonably witheld. Duncton offer a full range of vehicles, so I am suprised you have not been able to find something suitable.

Hence why i asked the question Mel-if the company that Andy works for does indeed pay an allowance, would it not be possible for them to lease a car for him? Obvious advantages being, most of the time companies can negotiate better rates and they get the car to meet their criteria! (Andy, sorry if you think i'm being nosey-just looking at possible alternatives! If indeed any are available)

Regards zim zim

i can see this problem popping up thousands of times during folks iva period.
what can ips do about this if all you di is taken up by the iva payment.
my car is 5 years old and not too bad at the minute but have to use it for a 90 mile round trip to work 5 days a week so it essential for me.
if it goes belly up where would i stand?

I think that you make a good point Zim Zim, but perhaps Andy does not want to publicise his current difficulties to his employers.

A valid point Mel-that thought did not even cross my mind!! (am annoyed with myself now because it should have done).

Andy - I'm surprised the cars at Duncton don't meet the criteria. Ours was 1 yr old when we had it with less than 10k mileage. We change cars after 2 years so will always lease a year old car. Therefore its still under warranty. Apart from tyres and service, everything else is included in the lease.

Maybe worth you having the contact from Melanie - see if he can find something that will fit your needs.

hy im now confused ....how would you be allowed a secure loan when in iva isnt it credit

Credit is permitted in an IVA with the consent of the Supervisor. Most clients who own property have to at least attempt to raise equity which is also credit and the Supervisor grants permission. We have granted permission in the past for unsecured credit when the money was needed for investment into a business. This lead to increased profits, contributions and dividend so was to the advantage of all concerned.