IVA, think we've been done!!!

moneysavingplumber

beautiful-dreamer wrote: »

Technically i'm debt free, but have had to add it to my mortgage. The thing with DFD is that they tell you that after 4 years that's it, no debt. Which yes it's true, but what they don't tell you is that you have to re-mortgage to clear it.

Sorry yes I'm with you now. Don't like the sound of this mob at all if they didn't explain any of this to you. I only went into an IVA because I was running a small business, I have no property so for me it was a good solution, and it can be a good solution for homeowners if you're given all the facts and there is no other way.

shelene

im hoping ill still be in negative equity in year 4 in this climate so i cant remortgage, but im expecting to pay another yr (6 yrs in total) - i think thats right!

beautiful-dreamer

Hi Shelene, the trouble with our IVA was that house prices had rocketed, therefore we had equity available. The other problem was because IVA's were a fairly new concept there weren't as many lenders that would touch you. Now it seems that there are lenders all over who specialise in helping people in IVA's or who are bankrupt. We ended up paying more as a final payment than we actually owed, and that was excluding the payments we had already made over 4 years!!

I suppose we live and learn!

Deep_In_Debt

In my circumstances, I couldn't see the point of getting an IVA. I only have 6 years left on my mortgage which is affordable for me and I didn't want to re-mortgage in year 4 and extend my mortgage by however many years thus probably taking me into retirement. It wouldn't actually be clearing my debt but adding to it - but secured thus putting my house at risk. I only have a small mortgage and am on my own and rent is more expensive round here.

Also, I was in a job regulated by the FSA which an IVA is supposed to protect. However, having lost my job in August, I'd probably be facing BR now anyway. A lot can happen in 5 years.

I'm on a dmp now and already reduced the term of that from 9 years to just over 6 years, in a year.

DFD were adamant 18 months ago that an IVA was right for me. Thank God, I didn't sign the paperwork. All their (and other companies) advertising in the media, makes it all sound so attractive.

beautiful-dreamer

You're not kidding!! DFD are terrible and i wouldn't recommend them. Fortunately we didn't have to extend our mortgage term, we just decided to make higher payments.