www.iva.co.uk

Hi, we are currently with Credit Fix who have taken over from Simple Debt Solutions. I keep reading about the equity clause in peoples terms and we have that too, however we have just paid month 62 of our IVA and have never been asked about any equity, can we still be made to remortgage after 6 years in an IVA???

Yes! Even though your IP seems to have overlooked this clause the onus is on you to carry it out -- it is your IVA, not your IP's, and the obligations are upon you to fulfill.

Why are you in a 6 year IVA ? Was this the original term? (Do you have NRAM as a creditor?)

Yes NRAM is a creditor and our mortgage provider. Our original term was 60 months and when that was due to be up I rang credit fix to ask what to do next and they told me to set the standing order up for another 12 months.

Odd ! Check your paperwork and your Chairman's Report. Does it definitely say 60 months on the proposal and was this definitely not extended to 72 in the Chairman's Report ?

If not -- then ask Credit Fix the reasons for the apparent 12 month extension.

If this was in lieu of equity, was a proper valuation carried out and what figures did they arrive at (house valuation and outstanding mortgage and any secured loans) ?

It says during the 5th year the supervisor is to obtain a market valuation, remortgage will be to a maximum of 85% loan to value, if the debtor is unable to obtain a remortgage, the arrangement may be extended by 12 months.

OK -- standard clause -- so, have CF explained why they asked you to pay another 12 months >

Sounds like, and I can only guess at this, that they have just assumed you won't get a remortgage ( fairly safe bet)and extended automatically.

IF this is the case then you will not be expected to attempt to remortgage. But you should check.

Yeah I will phone and ask, many thanks for your help!!