www.iva.co.uk

Payplan have our mortgage redemption statement and 2 house valuations.
In a letter from a case worker today, they want £50,000 over the next 17 years. My mortgage ends in 6 years and I'll be retired or in a box !

I thought the remortgage rules were that it wouldn't be more than 50% of IVA payment and no longer than the life of the mortgage ?

You need to dig out your paperwork and see what it says in your own arrangement ( things do vary). They can only expect or impose whatever has been agreed.

Most often this is a remortgage, or, if unable to do this, a 12 month extension. Again, as you say, normally a remortgage cannot be for longer than the original term and limited to 50% of the usual repayment.

They are trying this on increasingly these days, either through greed or badly trained case officers.

Check your agreement and stand your ground if need be.

Am I right in thinking that your iva can only ask to remortage for the outstanding balance if not fully paid back by month 60 plus stat interest. So say I owe 35k and have paid back 25k by month 60.. Would a secured loan only be for the remaining 10k plus interest ?

Plus fees, Ridingthestorm, which would amount to about 15% plus around £1500 - £2000 nominees fees and disbursements.

Thanks foggy, legend !

SFA - did paypal accept your own house valuations, or did they get their own done too?

They accepted the two quick sale valuations from local estate agents. I've never seen Payplan act so quickly as they did when I sent in all the bits. They responded on the same day.
Whenever I've needed help during the term it was always a wait of weeks. Sharks, that's all they are. I feel about as far removed from being a client as is possible.
Sorry to rant on but this has been awful with Payplan. As soon as we signed up, we were cut adrift. All this remortgaging etc was not explained over the phone but my own fault for not reading the paperwork fully before signing. At the time, I'd have signed anything to get out of the mess we were in. We remain in that mess now, only difference being that the phone doesn't ring any more.

Surely this is on the understanding that your mortgage lender will give you extra funds? We have just been through the same thing, as expected, and our mortgage lender wouldn't give us extra funds so our option was to find £36,000 from a third party or pay a further 12 months payments. We went with the latter.

If only...it seems more companies are trying to push people into a secured loan when a re-mortgage is unobtainable, and saying that because these funds would be available via a secured loan then the extra 12mths is not an alternative option....but the secured loan payment should be no more than 50% of your current monthly iva payment.. SFA have you queried this with Payplan?

Hi,

Just gone through this process with Stepchange who made it really simple, they instructed the valuation and obtained the redemption figure and accepted an online rejection as evidence of not being able to re-mortgage. This was followed by a choice between a big 3rd party sum to cover equity or the 12 months, easy decision.
Regards.

Hi

This secured loan option is concerning as it was never explained when you agreed your IVA

It should never be more than 50% of your current IVA payment and should not go beyond your existing mortgage term

Go back and query the information that you have been given by Payplan

Regards

I'm hopeful that we won't be able to remortgage but I'd be willing to look at a secured loan to offer them a full & final to the equivalent of 12 months payments which is nowhere near 50K !
Just want rid of a Payplan now in the same way I wanted rid of the creditors.
What a self inflicted mess !

If you take a secured loan it may be that you can raise more than the twelve months needed so an extension would be cheaper. If your proposal states remortgage you should be able to opt for the extension unless you just want the IVA over. You are right that any secured loan could only be at a maximum of 50% of the IVA payment so the shorter the term the less you would need to borrow.

Have a word with Shaun Vickery from Select whose details are in the ask a question section and he will be able to advise properly on secured loans.

Hi SFA,

If the advice from the experts here is to go with a 2nd charge to clear the IVA, please feel free to give me a call.

As a whole of market broker I have access to 2nd charge lenders and will be happy to provide you with some figures.

Regards
Steve

Sadly, we already have a 2nd loan on the house.
By mentioning a secured loan, I meant later this year if possible to get enough together to offer 9/10 months of payments as a full and final lump sum, just to get rid of the arrangement, Payplan and all the restrictions as early as possible.
Our 2nd loan provider no longer offers funds to anybody.