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Posted: Thu Apr 23, 2015 4:25 pm
by Emz993
Hi my mum and dad currently have an iva they have already done 6 years and now dfd want them to get a secured loan but it would be for 11 years and my dad retires in 5.after reading up I believe they can't make you do this any help would be great
Posted: Thu Apr 23, 2015 5:13 pm
by Foggy
In an IVA of that vintage the chances are that the equity release provisions say equity release is to be by means of a remortgage, failing this the IVA has to be extended by 12 months. A secured loan is not a remortgage so they cannot force them down that route.
Further, any loan cannot go beyond the term of the current mortgage or past state retirement age, so, again, this is a non-starter.
Check the paperwork for the relevant clauses, as some do differ.
Posted: Thu Apr 23, 2015 10:38 pm
by linrog
thank goodness for u foggy
Posted: Fri Apr 24, 2015 4:34 pm
by Til
We were with DFD and out IVA ended this last October so similar age to your parents IVA.
I totally second what Foggy has said.
Highly unlikely their IVA proposal or chairmans reports says anything about secured loans - more likely to say remortgage or extension for 12 months. There this would not permit DFD to force a secured loan. In addition to the rules about retirement age.
My only concern would be if your parents signed up and agreed to DFD's recent request that people switch to the 2014 protocol. If they agreed to and accepted the change they may indeed have new T&C's that allow for a secured loan. We refused the change to the 2014 protocol so hopefully your parents will have also refused.