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Posted: Tue May 10, 2016 3:36 pm
by Pauldk 98
On behalf of my partner who is coming to the end of a 5 year IVA and has been making regular payments but told that at the end of the IVA, she will need to re-mortgage her property or have to pay for another year. Is this is 'above board'.
Posted: Tue May 10, 2016 3:46 pm
by NTF Financial Solutions
In simple terms yes, it is a usual term of any IVA that homeowners need to look to release some equity in the last year of the IVA, or make 12 extra payments. Ask your partner to look at her proposal documents for the exact obligation.
Posted: Tue May 10, 2016 4:07 pm
by Foggy
As NTF says, this is a usual condition and should have been discussed at the outset. It will all be detailed in the paperwork.
Posted: Tue May 10, 2016 4:11 pm
by Lisa Thomas
Yes - usually applies if net equitable interest is over £5k.
Your partner will need to check their proposals and any modifications (and subsequent variations) for the answer.
Posted: Tue May 10, 2016 4:22 pm
by lifenoteasy
The issue may be if a secured loan is identified but it is not clear from the agreement that it was an option for consideration.