www.iva.co.uk

My husband and I have been in an IVA with Harrington Brooks for 5 years. We have recently attempted to remortgage to release some of the £20k equity as per our arrangement. Naturally, we were unable to remortgage and were expecting to continue the IVA for a further 12 months, however, today we received an email advising that a new direct debit instruction will be set up until 26 February 2020. I have contacted the IP via email to ask for a copy of our contract as I do not remember this ever being pointed out to us. It was only last year that we found out about the extended 12 months.
I have researched and it seems that the 12 month extension is standard and I am confused as to why ours has then be increased by 24 months. They haven’t even contacted us to discuss or explain.

Is this common practice? Our total debt upon commencement of the arrangement was £44k.

Hi Jodie,

Have you ever taken a payment break during the 5 years?

Regards

12 months is the standard extension for equity release provisions. You really need to dig out your copy of the proposal and chairman's report to see what you actually agreed to at the time.

Ryan wrote:

Hi Jodie,

Have you ever taken a payment break during the 5 years?

Regards

Hi Ryan,

Many thanks for your reply. No, we have never taken a payment break nor missed a payment. In around 2015 I noticed our annual statement showed an outstanding payment of 1 monthly payment amount. I called to query this and the IP advised payment had not been made for a month. Payment is taken by DD, therefore, I checked my bank statements to ensure the DD had not been returned etc. The statement showed the DD was never claimed for that month, which I obviously have no control over. Again, I called the IP and was advised that the payment would be added to the term and it would not be a problem
I shall await their reply to my email and see what they see. Just feeling a little negative about it. We are stuck on a high interest mortgage with NRAM and were hoping that if the IVA was satisfied next year we may be able to look at remortgaging in 3 years and saving on our monthly repayment. At this rate it looks likely it will be another 4-5 years before we can now do that. Not a massive issue I know, just a little disappointed that I thought this was all nearly over.

I wonder if NRAM are the problem here?

Foggy wrote:

12 months is the standard extension for equity release provisions. You really need to dig out your copy of the proposal and chairman's report to see what you actually agreed to at the time.

Many thanks for your reply. Yes, I will have a look for the original documents. I do not remember being advised of any additional terms - it was only last year we found out about the equity release provision extension. I know we have to take responsibility for not going over the small print perhaps.

kallis3 wrote:

I wonder if NRAM are the problem here?

I am going to assume so. I found an article yesterday evening where it stated NRAM usually try to extend the total IVA term to 7 years. They were the biggest creditor too so it would seem likely.
Thank you for your reply.

Jodie,

On the re-mortgage front we can look to re-mortgage you to a High Street Lender once your Completion certificate has been issued - be that normally 6 years after the IVA began or possibly 7 in your case.

No need to wait additional years after.

Regards

kallis3 wrote:

I wonder if NRAM are the problem here?

Indeed -- It is usual for NRAM to amend the term to six years at the outset, with the option of the further years extension for equity. As it appears that the proposal wasn't actually read at the time of signing this could well be the explanation.

Ryan wrote:

Jodie,

On the re-mortgage front we can look to re-mortgage you to a High Street Lender once your Completion certificate has been issued - be that normally 6 years after the IVA began or possibly 7 in your case.

No need to wait additional years after.

Regards

Hi Ryan,

That is really good to know, thank you. I assumed we would need to wait some time for our credit rating to improve. Nothing we can do I suppose. Although I am talking with my parents having read up on being able to offer a final settlement payment. I will keep looking into this and speak with the IP.

Jodie

Foggy wrote:

kallis3 wrote:

I wonder if NRAM are the problem here?

Indeed -- It is usual for NRAM to amend the term to six years at the outset, with the option of the further years extension for equity. As it appears that the proposal wasn't actually read at the time of signing this could well be the explanation.

At the time, I am sure we did read the proposal. 5 years and a few babies later and I struggle to remember every detail. As previously suggested I will dig out my original paperwork and go over it again. I just assumed, perhaps wrongly, that we would have received correspondence in some form to advise of this. Every time we have spoken with the IP recently they have indicated a 12-month extension following unsuccessful remortage attempts.

MrsWilce wrote:

Ryan wrote:

Jodie,

On the re-mortgage front we can look to re-mortgage you to a High Street Lender once your Completion certificate has been issued - be that normally 6 years after the IVA began or possibly 7 in your case.

No need to wait additional years after.

Regards

Hi Ryan,

That is really good to know, thank you. I assumed we would need to wait some time for our credit rating to improve. Nothing we can do I suppose. Although I am talking with my parents having read up on being able to offer a final settlement payment. I will keep looking into this and speak with the IP.

Jodie

Jodie, when speaking to the IP about this do not use the term settlement -- this is a different, and more expensive animanl to the one you want ... talk about a full and final offer.

Settlement is generally accepted as paying off the full original debt, fees and possible statutory interest, whereas a full and final offer is a lump sum offer based on payments remaining to be made only.

MrsWilce wrote:

Foggy wrote:

kallis3 wrote:

I wonder if NRAM are the problem here?

Indeed -- It is usual for NRAM to amend the term to six years at the outset, with the option of the further years extension for equity. As it appears that the proposal wasn't actually read at the time of signing this could well be the explanation.

At the time, I am sure we did read the proposal. 5 years and a few babies later and I struggle to remember every detail. As previously suggested I will dig out my original paperwork and go over it again. I just assumed, perhaps wrongly, that we would have received correspondence in some form to advise of this. Every time we have spoken with the IP recently they have indicated a 12-month extension following unsuccessful remortage attempts.

The proposal you signed would probably have stated 5 years -- NRAM usually amend this at the initial meeting, which will be detailed in the Chairman's Report of that meeting. You should have been asked to agree and sign this at the time --- however, we are often not in the best place at these times to take in or at least commit these things to memory.

Ah the good old NRAM 6 year amendments,this from the company who recklessly lent money to people who had no hope of paying it back.
Then demand that those said people pay them an extra year as a penalty.
Then they sell the debt on after 5 years (they did with mine) so what really is the point they are trying to make

watzki wrote:

Ah the good old NRAM 6 year amendments,this from the company who recklessly lent money to people who had no hope of paying it back.
Then demand that those said people pay them an extra year as a penalty.
Then they sell the debt on after 5 years (they did with mine) so what really is the point they are trying to make

What a one-sided view. Of course NRAM assumed the loan would be paid back. If someone knew they had no hope of paying it back then they shouldn't have asked for the loan! Takes both sides to be reckless. If someone defaults through a bona fide reason then that's another matter.