Anyone with IVA knowledge

longtermplanner

scared-sick wrote: »

I have AGAIN asked a different advisor who apparently asked the IP and they stated NO THEY WOULD NEVER MAKE ME TAKE OUT A SECURED LOAN!
They said basically the secured loan IS the remortgage so i would be expected to take out a secured loan purely because that is what a mortgage is.

What am i expected to believe?

It is hard to see why the protocol was changed if "secured loan" just means "remortgage".

If your IP says they would never ask for a secured loan, then I would ask them to put that in writing. If they do, then I would be happy to proceed with the IVA on that basis.

Foxy-Stoat_3

Your term would probably be 6 years instead of 5....either way its better paying the debt for 20 years

scared-sick

longtermplanner wrote: »

It is hard to see why the protocol was changed if "secured loan" just means "remortgage".

If your IP says they would never ask for a secured loan, then I would ask them to put that in writing. If they do, then I would be happy to proceed with the IVA on that basis.

Am i really allowed to 'dictate' what goes into my IVA?
I asked about a bank account that i have for my son. It hasnt got much in and i havent put anything in for years, but i want to keep it. They said i could as it was in my sons name with my name on the account as he is under 18.
I would want it written in the iva about being allowed to keep that too if i am able to put things into the wording.

scared-sick

Foxy-Stoat wrote: »

Your term would probably be 6 years instead of 5....either way its better paying the debt for 20 years

Yes i imagine mine would be 6 years.
However i would rather do a 20 year dmp than take out an IVA AND a secured loan as to me that defeats the object of the iva in the first place!

longtermplanner

scared-sick wrote: »

Am i really allowed to 'dictate' what goes into my IVA?

Yes and No.

YES you can say what you want to go into it. IVAs don't have to be standard documents.

BUT your IP is very likely to want to use the standard IVA protocol unless there are good reasons not too, for example if you have complicated assets such unlisted company shares. Your creditors are more likely to accept the standard terms and it is all a lot quicker to process.

I wasn't saying thay you should insist on the secured loan clause being removed from your IVA. I was suggesting that if you receive a letter on headed notepaper from your IP 'explaining' that the clause means a re-mortgage and they will not expect you to take a secured loan, then that would be fine.

I asked about a bank account that i have for my son. It hasnt got much in and i havent put anything in for years, but i want to keep it. They said i could as it was in my sons name with my name on the account as he is under 18.
I would want it written in the iva about being allowed to keep that too if i am able to put things into the wording.

I think you should get this into perspective. After your IVA completes, you would be able to replace these savings for your son with no trouble, won't you if the worst happens? So I wouldn't complicate things by arguing or asking for changes for anything which is a small amount. Especially as they have said that you can keep the money!

scared-sick

Thank you for the very helpful responses.

Has anyone been in an IVA an needed to RENEW their mortgage?

I dont mean a remortgage i just mean i have a fixed rate mortgage which will need renewed in 2 years.
Will i be able to renew this ok or will it be like a bad credit loan where you can still get them but the interest rates are extortionate?
Will i even be able to get another fixed rate mortgage?

UpToMyNeckInIt

Hi scared-sick,

I understand your concerns, and remember mulling the same stuff as you over a couple of years ago. To answer a few of them:

1). It is extremely unlikely that you will be able to modify or delete the 'equity release' clause as required by the protocol. You can but ask I suppose. In any event, if because of affordability, how much your existing mortgage is in relation to your take-home household income etc, it is by no means a given that you will be 'forced' to remortgage / secure loan. Currently, such lending to IVA customers is very rare (and I have to say, the cases I have come across, the disposable income has been v.high, and the equity significant), but that may of course change over the next 3-4 Years.

There is one sub-prime product (approx. 9%apr) that I am aware of:

http://www.magellanhomeloans.co.uk/media/6336/Magellan%20Homeloans%20Product%20Guide%20August%202013.pdf

...but only those customers with a significant amount of equity and a big income, with lots of affordability will be eligible. Saying that, as the economy continues to (apparently) recover, house prices rise, banks will take bigger risks, and more mortgage / loan products will become available to sub-prime customers over the years I'm sure.

2). As for switching your existing mortgage deal. Again, you will probably not be able to (same applies with a DMP I think you will find - if not, switch now, before entering an IVA). I have heard of some IVA customers being able to negotiate with their existing mortgage provider to switch to an alternative product with the same company, but this strikes me as very hit & miss.

Personally, when my fixed rate ended 18 Months ago, I got put onto the SVR, and save £400pcm in the process.

3). Yes, you will eventually be able to get a remortgage after your credit file is restored (approx. 6-Years after the START of your IVA, or 6-Years AFTER your final payment in the DMP - ie: approx 31 Years in your case).

4). You should indeed be able to 'exclude' your Son's bank account.

Hope this helps.

scared-sick

UpToMyNeckInIt wrote: »

Hi scared-sick,

I understand your concerns, and remember mulling the same stuff as you over a couple of years ago. To answer a few of them:

1). It is extremely unlikely that you will be able to modify or delete the 'equity release' clause as required by the protocol. You can but ask I suppose. In any event, if because of affordability, how much your existing mortgage is in relation to your take-home household income etc, it is by no means a given that you will be 'forced' to remortgage / secure loan. Currently, such lending to IVA customers is very rare (and I have to say, the cases I have come across, the disposable income has been v.high, and the equity significant), but that may of course change over the next 3-4 Years.



There is one sub-prime product (approx. 9%apr) that I am aware of:

http://www.magellanhomeloans.co.uk/media/6336/Magellan%20Homeloans%20Product%20Guide%20August%202013.pdf

...but only those customers with a significant amount of equity and a big income, with lots of affordability will be eligible. Saying that, as the economy continues to (apparently) recover, house prices rise, banks will take bigger risks, and more mortgage / loan products will become available to sub-prime customers over the years I'm sure.

2). As for switching your existing mortgage deal. Again, you will probably not be able to (same applies with a DMP I think you will find - if not, switch now, before entering an IVA). I have heard of some IVA customers being able to negotiate with their existing mortgage provider to switch to an alternative product with the same company, but this strikes me as very hit & miss.

Personally, when my fixed rate ended 18 Months ago, I got put onto the SVR, and save £400pcm in the process.

3). Yes, you will eventually be able to get a remortgage after your credit file is restored (approx. 6-Years after the START of your IVA, or 6-Years AFTER your final payment in the DMP - ie: approx 31 Years in your case).

4). You should indeed be able to 'exclude' your Son's bank account.

Hope this helps.

Thank you that is very helpful.

Just to clarify i dont want to switch mortgage now i am only asking the question for when my current deal comes to an end. I was just worried that they would only give me a new deal on a high interest rate because of my IVA.
Are you saying the mortgage provider will just treat me the same as everyone else interest rate wise?

The secured loan bit really bothers me as i am sure having spoke to them the IVA people dont know about it yet and therefore are brushing it off as untrue. Then in a few years time tell me i have to take a loan out as its part of the deal!

I went through some equity release scenarios with them too and working on BEST case (not current case) scenario i said in 5 years time if house was worth £125,000 and i owed £100,000 on my mortgage, how much equity release would that be, she said £6000, does that sound about right??

She then said about probably not getting a remortgage so iva will continue for a 6th year. Thats fine but i dont want to take out a 6 grand high interest loan!!!
Would they even look at affordability if they tried to make me take out a loan or would they not care as the loan would in effect end the iva??

Sorry so many questions x

22cuddles

I can only comment on my own situation regarding remortgaging. I was asked to supply a copy of my most recent mortgage statement about halfway through year four which I did. I assumed that I would probably have to get some quotes/valuations but they just wrote back within a couple of weeks saying it was clear I wouldn't be able to remortgage and that my payments would continue for another 12 months subject to an income and expenditure check. As it was my payments remained the same and I have three payments left to make, all being well. It was very disappointing at the time as I'd been counting down the months of my "final" year but the last 12 months have actually passed quite quickly. It's been a very tough six years at times - I knew nothing of the guidelines for I & E before I signed up for my IVA and I do feel I didn't get anywhere near the right allowance for some things but I've survived. Good Luck with your decision.

longtermplanner

scared-sick wrote: »

Has anyone been in an IVA an needed to RENEW their mortgage?

I dont mean a remortgage i just mean i have a fixed rate mortgage which will need renewed in 2 years.

You don't HAVE to renew when the fix ends, you just start paying the lenders SVR instead. Ask what that is at the moment, you may find it's surprisingly low!