Got an IVA but need a loan

pennypinching_2

I need a new car as my car is on its last legs. I want to spend approx. £5000 as the car I drive (which I got cheap because it was all I could afford) has cost me a fortune in repairs.

Now when I took out my IVA I was told I would be able to get credit but it would need to be secured.

Has anyone had a secured loan since entering into an IVA, if so which companies and is there any advice you can offer?

Thanks.

jonesMUFCforever

I really think you stand no chance of getting £5k credit unless from a loan shark.
Do you have anything TO secure the loan such as a property?

Just think why you are in an IVA - is it because you could not afford to repay what you already borrowed? - so how is borrowing more with the possibility of losing your home if you do not repay going to help?

pennypinching_2

The loan would be secured against the car and not my home. The reason for the IVA was due to becoming self employed which didnt work and I never missed any of my payments.

I now have employment but I dont have much spare cash however my current car is a huge 4x4 (seven seater which I need) which is very expensive to run. I have calculated that I will save £90 per month in running costs if I change my car, so hopefully the loan will only cost me an extra £30 - £40 per month.

chambta

pennypinching wrote: »

The loan would be secured against the car and not my home. The reason for the IVA was due to becoming self employed which didnt work and I never missed any of my payments.

I now have employment but I dont have much spare cash however my current car is a huge 4x4 (seven seater which I need) which is very expensive to run. I have calculated that I will save £90 per month in running costs if I change my car, so hopefully the loan will only cost me an extra £30 - £40 per month.

I think it's rather unlikely you'll get the credit you seek.

So the IVA was nothing to do with the level of debts you had?

pennypinching_2

Hi Chambta The IVA was to do with the level of debts which I just couldnt afford to pay. I have always been employed even when I was self employed because I wanted to keep paying my debts, but it just got to the point where I couldnt afford to do that any longer and it was making me ill.

I think I will get credit with some unsavory companies which I really want to avoid so was hoping someone could offer me a few names of companies I could try that might consider me, or like I said if anyone has an IVA and was able to get secured credit. The car is essential for me to get to work, so its a must.

Scousebird_2

pennypinching wrote: »

The loan would be secured against the car and not my home. The reason for the IVA was due to becoming self employed which didnt work and I never missed any of my payments.

I now have employment but I dont have much spare cash however my current car is a huge 4x4 (seven seater which I need) which is very expensive to run. I have calculated that I will save £90 per month in running costs if I change my car, so hopefully the loan will only cost me an extra £30 - £40 per month.

You cannot secure a personal loan on a car unless it is specifically car finance. No bank will do secured lending on a car as it depreciates in value, wheras a house can be reposessed and the debt repaid-and secured lending/homeowner loans are on property only. An IVA makes it very difficult to get credit on top of an already difficult credit history. I am afraid that your options are limited. Can you not afford a cheap secondhand car at all??

pennypinching_2

I purchased my now car last year for £1800 and I have spent over that in repairs hence why I wanted a newer one. It cost me a fortune to get it through the MOT and it reported that the underneath was serverly corroded and now the clutch is sticking to the floor and the gears are hard to get, so its a bit desperate.

Rughead

pennypinching wrote: »

I need a new car as my car is on its last legs. I want to spend approx. £5000 as the car I drive (which I got cheap because it was all I could afford) has cost me a fortune in repairs.

Now when I took out my IVA I was told I would be able to get credit but it would need to be secured.

Has anyone had a secured loan since entering into an IVA, if so which companies and is there any advice you can offer?

Thanks.

Hello pennypinching.

You will not be able to have a secured loan unless you pay of the remaining amount of the IVA. The IVA practitioner would need to know that you are trying to raise finance as this is against the agreement you have with your creditors. You have had your interest frozen and the debt reduced as you cannot afford to pay them. If you could afford to repay a new loan then the money you could afford should go toward that debt. If you are earning extra money now to what you earned when you wen into your IVA you should inform your practitioner.

Also with an IVA if you are a homeowner a charge is normally placed on the property to stop you raising funds without their consent.

Sorry to be the bearer of bad news.

tictax

Scousebird wrote: »

You cannot secure a personal loan on a car unless it is specifically car finance.

You will struggle to even get car finance. Somw of the sub-prime lenders may consider you but you will get charged a ridiculously high interest rate. Seeing a current IVA on your credit file will probably get you declined automatically.

As for looking for a lender have you approached who is dealing with your IVA if they are the ones that told you that you may be able to get credit to get names of companies that may consider you.

CLAPTON

HIre Purchase perhaps?

pennypinching_2

Thanks for all your help and suggestions. You have given me some things to look at and consider.