www.iva.co.uk

Hi I was just wondering if anyone has gone down the route of getting a sprout loan to end their IVA and if it's worth doing ?

Hi Clare,

I'm currently going through the process myself of using a Sprout Loan as a final settlement.

From what i've learned along the way, here are the key points

- Sprout will call you to make sure that you're fully aware of the loan, the lack of security in comparison to an IVA and
they'll do an income and expenditure check too.

- They'll ask for bank statements and wage slips before sending it off to their underwriting team

- When an offer is made, they'll give you an offer in principle which can be given to your IVA company as a proposal

- The IVA company will arrange a meeting with your creditors.

Sprout will never give someone 100% of the value of the remaining IVA payments. They'll offer 80%, so the IVA company or creditors might not accept it.

My meeting is on the 26th of October, and although they've only offered 80%, I'd have made 2 more payments before it's all said and done so it kind of closes the gap.

How long do you have left on your IVA? and how big is the 20% difference? In my case i'll pay £2900 into my IVA if i continue as I am, but Sprout are offering £2550 as a final settlement.

I think it's worth it if it works out. Some swear by the security of the IVA but to me it feels like a financial prison sentence and I can't wait to be rid of it.

Do you have a mortgage? If you do and the fixed rate ends soon, you have to be very careful about taking on a Sprout loan as you have to be sure you can afford the much higher mortgage rate as well as the Sprout loan.

Without a Sprout loan, if a mortgage increase causes problems you may be able to get the IVA settled early "on the basis of funds paid to date".

Settling the IVA with a Sprout loan will not make it easier to get a remortgage at a "normal" rate as the IVA will stay on your credit record for the rest of the 6 years

Tue Oct 04, 2022 11:22 amAceshigh1993 wrote:

Hi Clare,

I'm currently going through the process myself of using a Sprout Loan as a final settlement.

From what i've learned along the way, here are the key points

- Sprout will call you to make sure that you're fully aware of the loan, the lack of security in comparison to an IVA and
they'll do an income and expenditure check too.

- They'll ask for bank statements and wage slips before sending it off to their underwriting team

- When an offer is made, they'll give you an offer in principle which can be given to your IVA company as a proposal

- The IVA company will arrange a meeting with your creditors.

Sprout will never give someone 100% of the value of the remaining IVA payments. They'll offer 80%, so the IVA company or creditors might not accept it.

My meeting is on the 26th of October, and although they've only offered 80%, I'd have made 2 more payments before it's all said and done so it kind of closes the gap.

How long do you have left on your IVA? and how big is the 20% difference? In my case i'll pay £2900 into my IVA if i continue as I am, but Sprout are offering £2550 as a final settlement.

I think it's worth it if it works out. Some swear by the security of the IVA but to me it feels like a financial prison sentence and I can't wait to be rid of it.

When you sent the letter sprout give you to send to creditfix how did you have to wait for creditfix to get back to you? Thanks Clare