www.iva.co.uk

Myself & my husband are currently on our last year of our interlocking iva's. All has gone well up until this year. We have managed & never missed any payments etc. My husband was told last month though that he is being made redundant probably in the next couple of months. We have asked if we can make a full & final with this money, but have been told no because all of the money will go to the creditors & we can keep 6 mths to pay bills etc. They have asked us for property valuations & mortgage redemptions, which i have also sent. Today i have received a very matter of fact e mail informing me that because we have got 26k equity in our property we have got to get 2 mortgage quotes.

I don't mind doing this at all because remortgaging is in my proposal but this amount is at 100% loan to value?

My proposal is the standard one which says remortgage at 85% and both myself and my husband have got a 5k deminis clause in there too.

Our property value is 120k & our mortgage and secured loan come to 93,500. So i am so worried and confused at the moment. My husband is being made redundant & now they have asked me to remortgage 26k?

I have e mailed them back today, but received no reply, so it will probably be next week now. Leaving me worrying all weekend. They just seem to be treating us as a number and not as people.

Is anyone able to interpret the equity release clause because it is very confusing, but i know that they have definitely got it wrong.

Thanks

Sorry to hear of your husbands redundancy ... it appears to be on the up all over the place again at present.
If it were me I would ring them on Monday and ask for an appt with your IP rather than a caseworker ..this can be face to face or over the phone.
Whats in your proposal cannot be changed ...so there is clearly an error somewhere ..... fingers crossed it can be resolved.

Thank you Luluj.

It's just the stress & worry of having to wait all weekend

I will just be glad when it's all finished now. It's been a very long 4 years.

If your husband is being made redundant the equity is irrelevant as no one will give you a mortgage. You should be entitled to a six month break to see what happens.

Hi Michael,

They will not listen to us. I told them about my husbands redundancy a couple of weeks ago & i asked if we could do a full & final, but they said no & that all of the money will go into the iva apart from 6 mths net salary. If my husband gets a job before then we have to pay the remainder back. They told me to send property valuations which i have done. I was just so shocked yesterday when i get this e mail saying that we've got to try & remortgage 26k? I really don't think that they are treating us as people just following policies & procedures to the book. The 26k is also at 100% ltv which i know isn't right because it says 85% ltv in our proposal & there is a 5k deminis clause in there too. Although i don't really know what that means.

Really stressed about it all at the minute.

Hi. By my calculation, you actually have £8500 equity, based on 85% LTV. An expert opinion on this would be welcome, but that makes £4250 equity each, so the deminimis clause kicks in and the property should be excluded.

The amounts here are really academic as you will not be able to remortgage anyway, but you would be expected to jump through the hoops and try, if they do not accept the deminimis application.

Your company is correct in that the redundancy payment, apart from 6 months worth to tide you over whilst looking for work is payable into the IVA, and, so is not available for the purposes of a full and final offer. However, by the time that runs out, you will only be a few months from the end (in my view).

Hi Foggy,

I am at my absolute whits end with them at the moment. We have been given a new case worker this year & he is useless. When i called a couple of weeks ago he put me on hold 3 times to ask someone else the answer to my questions, he really didn't have a clue. We have received our annual 4th year review today & he is saying that my husband is £90 in arrears. We have always paid on time, so really confused about this too? Also a ppi payment that we had last year isn't showing on there for the proper amount. I just feel like hitting my head against a brick wall. They just argue with us. I think that i am going to go to citizens advice next week and see if they can help us.

Really fed up with the fact that i can't trust what they say 85% is 85% not 100%. Anyone would know that.

As Luluj suggested, I would ring them up on Monday and insist on speaking to the IP, rather than the person you have been speaking to, who obviously doesn't know the answers!

Whilst chatting to them, ask them for details of their formal complaints procedure and make a formal complaint if you get no-where. This is a hoop you have to jump through before you are able to escalate any complaint to their regulators.

This sounds totally wrong and I agree you need to speak directly to the IP. Would it be possible to borrow the funds for a full and final from family on the grounds that your husband is threatened with redundancy and repay the money if it happens? Creditors may well accept this.

Hi Michael,

I have already contacted him by e mail, but he said he is not willing to go to our creditors with a full & final at the moment. This is because all of the redundancy will be captured by the iva anyway & he will see where we are in 6 mths whether my husband as got another job etc.

He also wanted the figures to see if we have got any equity to release, hence the 26k that i have been asked to remortgage.

I will just be a laughing stock with the mortgage lenders and wasting their time, but if it's got to be done i suppose i'll have to do it.

The redundancy has not been finalised as yet so your IP can certainly convene a meeting of creditors. It is possible that your husband takes a lower paid job within the firm or circumstances change as it does not appear that your husband has been given a firm date of leaving. You can demand a variation if you want and it is up to creditors whether or not to accept.

Might I ask who your provider is, Dixie ?

Hi Skippy,

It's Cleardebt & David Mond told me that he had nothing more to say on the redundancy situation a couple of weeks ago. I have e mailed him this morning about the 26k equity that they want me to remortgage for, but not holding out any hope on that either. He hasn't replied to me yet, but to be fair it is the weekend so perhaps next week.

Hi Michael,

He is definitely being made redundant in the next couple of months because the whole place is shutting down & they are moving all the work abroad.

We have got letters off his Employer stating this. He is in the process of looking for jobs because he has never been out of work before, so a very scary prospect for us.

Hopefully he will have a new job within 6 mths but the pay will probably be lower because he is well paid for what he does at the moment.

I just can't cope with the thought of it at the moment and apparantly having to try and remortgage as well.

I do really appreciate everyone's advice thank you.

No need to worry about remortgaging as you won't be able to.

If there is sufficient equity and I worked out 78% (LTV) then you should be expected to release this into the IVA. So, an extension of 12 months is the norm.

Given redundancy, your I.P could try to agree a payment break.