We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Credit Fix + Just Lending
Steve_Yearwood
Posts: 2 Newbie
in IVA & DRO
Good evening all!
We are in our 6th year and our IVA is with Credit Fix (we were originally with IVA Advice Co.)
We are still to receive our letter from Credit Fix about equity release but have just received an email from Just Lending offering us a second charge mortgage (secured loan) to exit the IVA early.
Please see letter below, I would love to hear your thoughts on this as an option.
Thanks in advance
Steve
Good Afternoon,
Your Equity Assessment for IVA settlement
We have been passed your details from your Case Officer and Insolvency Practitioner at Credit Fix and asked to contact you in order to conduct an Equity Assessment in line with this stage of your IVA and your IVA proposal.
You should have recently received a letter along the following lines from Credit Fix:
“I refer to the above and confirm that in accordance with the terms of your arrangement, I am now obligated to review, calculate and realise my interest in the equity in your property.
Your equity will be calculated by obtaining a valuation at 85% loan to value and deducting the outstanding balance on your mortgage and any secured loans, if applicable. If the equity is less than £5,000 then you will not be considered for re-mortgaging and your Arrangement will continue as agreed per your proposal. On the other hand, if your equity is greater than £5,000 then it may be possible for you to re-mortgage to introduce funds into the Arrangement.
If a re-mortgage, which also includes all secured lending options is possible, the amount you have to borrow and pay into the arrangement is subject to specific limits. These limits are detailed in your proposal to creditors. A copy of your proposal can be provided, if requested.
To help calculate your equity and to help you apply secured lending I will introduce you to Just Lending (Scotland) Ltd. Just Lending is regulated by the Financial Conduct Authority and are qualified to give financial advice in relation to secured lending. A member of the team at Just Lending will be in contact with you in due course to discuss their services and to explain how they can help you at this stage of your arrangement.
You are of course able to take other independent financial advice to ascertain if a re-mortgage or another form of secured lending is possible. If you chose to do this, then please keep your case officer informed at each stage throughout your application process.
If, after taking independent financial advice either from Just Lending or elsewhere, you are unable to re-finance then I will require documentary evidence showing the reason for rejection.
In circumstances where re-mortgage or other secured lending options are not possible you will be required to introduce all or part of the available equity in your property by other means as described in your proposal. These alternatives can only be discussed once written evidence has been provided to show that a re-mortgage or other secured lending option is not possible.
Please remember that the property is an asset in the arrangement and is held in a trust for the purposes of the arrangement. A restriction, in my favour, remains in place and you are not permitted to sell the property without my written consent.
Please note, if you are currently paying a monthly contribution from your income, then this should continue until you are advised otherwise.
If you have any further queries, please contact Customer Service on 0800 0431 431 or by email at [EMAIL="customerservice@creditfixme.co.uk"]customerservice@creditfixme.co.uk[/EMAIL] to discuss the matter.”
The intention of our service is to put you in an informed position and make you aware of all of the options that are available to you. Moving on to our products, we will carry out an Equity Assessment where the aim is to firstly provide full and final successful settlement to the IVA but also to get you back on track with your credit profile much quicker than has previously been possible.
What are your options? You have got them…
There has been a change in legislation which has resulted in more options for people who are party to an Insolvency Arrangement to settle their IVA early as opposed to an extension. Previously, a Re-mortgage or 12 month extension of the IVA were the only two options available. Re-mortgage is not always an affordable or viable option as it may be costly or may increase the existing term of your current mortgage for the purpose of releasing some equity and settling your IVA.
In light of this legislation change, a Second Charge Mortgage (previously known as a Secured Loan), now comes under the same regulation as a Mortgage or Re-mortgage. A Second Charge Mortgage often has more beneficial terms than a Re-mortgage as it releases a smaller proportion of the equity over a shorter term, while leaving your current mortgage in place.
By choosing to refinance and release some of the equity in line with your proposal you can start to rebuild your Credit Profile by as much as 2 years early as opposed to continuing the dormancy on your Credit Profile and prolonging the effect of your IVA. You can use your IVA proposal to your advantage and explore all of the options available to you.
We understand that having been through the IVA process, the thought of accumulating any new finance may be worrying, however we are talking about Credit, not Debt. Credit is a part of modern day living and at some point in the future you may require to refinance or indeed acquire new finance. This could be, for example, Car Finance or even as simple as a mobile phone contract, things that you have not been able to consider or receive competitive offers on due to being in the IVA as this element of control has previously been taken away from you.
Our role is to give you control back and to put you in the strongest financial position to enable you to approach any future financial changes with confidence.
Our panel of Lenders share our view that while you have previously experienced financial difficulty, you dealt with it by way of the IVA and you should be commended for this decision in dealing with your debt responsibly. We believe that you should not be penalised by being tied to the arrangement for longer than necessary or offered something that is not viable for you now or going forward into your future, after your IVA.
The new option is to pay your final 12 extended payments by releasing a small portion of your equity to satisfy your Creditors in one lump sum and thereby exiting your IVA early. This will have the immediate effect of showing your IVA as complete on your credit file. This also gives you full control of your property back.
How does this work for you?
Instead of making an extended 12 monthly payments to Credit Fix you may be eligible for a Re-mortgage or a Second Charge Mortgage for the amount of the 12 payments due and a sum agreed by your Creditors to lift the restriction.
By this method, you have now exited your IVA 12 months early, the new monthly payments you make to the Re-mortgage or Second Charge Mortgage will be reported monthly on your credit file. This means that as your defaults are falling off your file, your new payments are showing, your IVA is complete and your credit file should receive a boost by showing you are now credit active.
To summarise on an IVA settlement plan
· We can conduct an independent Equity Assessment on your behalf to determine all of the options for you to successfully settle your IVA.
· You could potentially face a 12 Month extension of your IVA which keeps you tied to the arrangement, keeps the restriction on your property for a further minimum of 12 Months, keeps you on the Insolvency Register for a further 15 Months and continues the dormancy of your Credit Profile.
· You could be approved for one of our products as full and final immediate settlement of your IVA. If you decided to proceed with this offer you could have successfully settled your IVA in around 28 Days’ time on receipt of the complete, approved application documents. The documentation to remove the restriction over your property will be actioned within 3 weeks after your IVA is settled and we will work with Credit Fix to ensure that this happens.
· You will be removed from the Insolvency Register in 3 months after your IVA settles and the new charge will be registered on your credit profile which will provide that much needed activity on there and impact your Credit Score over time.
We also like to advise at this stage there is no requirement for you to take one of our products to exit your IVA early, if you do not wish to do this you can independently attempt to Remortgage and if this is not successful for you the alternative would be to extend the term of the IVA for a further 12 months to enable creditors to receive this extra payment.
At present it is possible to add a further 12 months to the IVA term and for you to make a further 12 payments, so you pay and be held in the IVA for 72 rather than 60 months.
This method means that you are unlikely to be able to improve your credit score until month 72 at earliest and the restriction will stay on your home until the at least a month after you make that final extended payment. You will be removed from the Insolvency Register 3 Months after your IVA settles which could potentially be 15 Months from this point.
What is your next step?
Please refer to the attached Equity Assessment Documents:
Fact Find – Please complete this with up to date information. This will allow us to assess your equity and case based on your current circumstances. When completed please sign and return.
Initial Disclosure Document – This details us as a company, who we are affiliated with and regulated by. This is for your information and file.
Use of your Information – If we were to proceed to Credit Search we require your authority to do so. Please read over this document, sign and return.
When you have completed and returned the documents (please note this can also be down via email to [EMAIL="info@justlending.co.uk"]info@justlending.co.uk[/EMAIL]) we will complete the following steps:
Online Valuation - We will conduct this on your behalf at our cost which will give us a valuation range for your property. We will advise you of this information so that you can also know what the projected market value is.
Credit Search - We require your consent to do so please advise if we have the authority to do this. (please refer once more to the Use of your information document). We are fully aware that your IVA will show however we require the up-to-date credit search to show your Mortgage activity and payment along with your current credit score. This is a very important part of the equity assessment as your credit profile has been in a state of dormancy since you entered into your IVA and there has been very little activity other than your monthly mortgage payment. Should you decide to proceed with one of our products as way of full and final settlement of your IVA this will be registered on your credit profile and provide much needed positive activity which should impact your credit score. In the future and at your request we can provide you with an up-to-date search which will show the positive increase in your score.
Completion of your Equity Assessment Report - We gather all of the information that you and your Insolvency Practitioner has provided along with the up-to-date details pertaining to your property and current credit status and this forms your Equity Assessment Report. From this we are now in a position to look at products and options that are available to you and most viable for you. We will contact you at a time convenient to you to discuss this.
We will be in touch over the course of the next few days to discuss your Equity Assessment, or alternatively please feel free to contact us on 0141 255 1380 to discuss or if you wish to progress your Assessment please complete the required documents and return to us.
We look forward to working with you to successfully settle your IVA.
Kind regards,
Kirsty McLaren
Equity Assessor
We are in our 6th year and our IVA is with Credit Fix (we were originally with IVA Advice Co.)
We are still to receive our letter from Credit Fix about equity release but have just received an email from Just Lending offering us a second charge mortgage (secured loan) to exit the IVA early.
Please see letter below, I would love to hear your thoughts on this as an option.
Thanks in advance
Steve
Good Afternoon,
Your Equity Assessment for IVA settlement
We have been passed your details from your Case Officer and Insolvency Practitioner at Credit Fix and asked to contact you in order to conduct an Equity Assessment in line with this stage of your IVA and your IVA proposal.
You should have recently received a letter along the following lines from Credit Fix:
“I refer to the above and confirm that in accordance with the terms of your arrangement, I am now obligated to review, calculate and realise my interest in the equity in your property.
Your equity will be calculated by obtaining a valuation at 85% loan to value and deducting the outstanding balance on your mortgage and any secured loans, if applicable. If the equity is less than £5,000 then you will not be considered for re-mortgaging and your Arrangement will continue as agreed per your proposal. On the other hand, if your equity is greater than £5,000 then it may be possible for you to re-mortgage to introduce funds into the Arrangement.
If a re-mortgage, which also includes all secured lending options is possible, the amount you have to borrow and pay into the arrangement is subject to specific limits. These limits are detailed in your proposal to creditors. A copy of your proposal can be provided, if requested.
To help calculate your equity and to help you apply secured lending I will introduce you to Just Lending (Scotland) Ltd. Just Lending is regulated by the Financial Conduct Authority and are qualified to give financial advice in relation to secured lending. A member of the team at Just Lending will be in contact with you in due course to discuss their services and to explain how they can help you at this stage of your arrangement.
You are of course able to take other independent financial advice to ascertain if a re-mortgage or another form of secured lending is possible. If you chose to do this, then please keep your case officer informed at each stage throughout your application process.
If, after taking independent financial advice either from Just Lending or elsewhere, you are unable to re-finance then I will require documentary evidence showing the reason for rejection.
In circumstances where re-mortgage or other secured lending options are not possible you will be required to introduce all or part of the available equity in your property by other means as described in your proposal. These alternatives can only be discussed once written evidence has been provided to show that a re-mortgage or other secured lending option is not possible.
Please remember that the property is an asset in the arrangement and is held in a trust for the purposes of the arrangement. A restriction, in my favour, remains in place and you are not permitted to sell the property without my written consent.
Please note, if you are currently paying a monthly contribution from your income, then this should continue until you are advised otherwise.
If you have any further queries, please contact Customer Service on 0800 0431 431 or by email at [EMAIL="customerservice@creditfixme.co.uk"]customerservice@creditfixme.co.uk[/EMAIL] to discuss the matter.”
The intention of our service is to put you in an informed position and make you aware of all of the options that are available to you. Moving on to our products, we will carry out an Equity Assessment where the aim is to firstly provide full and final successful settlement to the IVA but also to get you back on track with your credit profile much quicker than has previously been possible.
What are your options? You have got them…
There has been a change in legislation which has resulted in more options for people who are party to an Insolvency Arrangement to settle their IVA early as opposed to an extension. Previously, a Re-mortgage or 12 month extension of the IVA were the only two options available. Re-mortgage is not always an affordable or viable option as it may be costly or may increase the existing term of your current mortgage for the purpose of releasing some equity and settling your IVA.
In light of this legislation change, a Second Charge Mortgage (previously known as a Secured Loan), now comes under the same regulation as a Mortgage or Re-mortgage. A Second Charge Mortgage often has more beneficial terms than a Re-mortgage as it releases a smaller proportion of the equity over a shorter term, while leaving your current mortgage in place.
By choosing to refinance and release some of the equity in line with your proposal you can start to rebuild your Credit Profile by as much as 2 years early as opposed to continuing the dormancy on your Credit Profile and prolonging the effect of your IVA. You can use your IVA proposal to your advantage and explore all of the options available to you.
We understand that having been through the IVA process, the thought of accumulating any new finance may be worrying, however we are talking about Credit, not Debt. Credit is a part of modern day living and at some point in the future you may require to refinance or indeed acquire new finance. This could be, for example, Car Finance or even as simple as a mobile phone contract, things that you have not been able to consider or receive competitive offers on due to being in the IVA as this element of control has previously been taken away from you.
Our role is to give you control back and to put you in the strongest financial position to enable you to approach any future financial changes with confidence.
Our panel of Lenders share our view that while you have previously experienced financial difficulty, you dealt with it by way of the IVA and you should be commended for this decision in dealing with your debt responsibly. We believe that you should not be penalised by being tied to the arrangement for longer than necessary or offered something that is not viable for you now or going forward into your future, after your IVA.
The new option is to pay your final 12 extended payments by releasing a small portion of your equity to satisfy your Creditors in one lump sum and thereby exiting your IVA early. This will have the immediate effect of showing your IVA as complete on your credit file. This also gives you full control of your property back.
How does this work for you?
Instead of making an extended 12 monthly payments to Credit Fix you may be eligible for a Re-mortgage or a Second Charge Mortgage for the amount of the 12 payments due and a sum agreed by your Creditors to lift the restriction.
By this method, you have now exited your IVA 12 months early, the new monthly payments you make to the Re-mortgage or Second Charge Mortgage will be reported monthly on your credit file. This means that as your defaults are falling off your file, your new payments are showing, your IVA is complete and your credit file should receive a boost by showing you are now credit active.
To summarise on an IVA settlement plan
· We can conduct an independent Equity Assessment on your behalf to determine all of the options for you to successfully settle your IVA.
· You could potentially face a 12 Month extension of your IVA which keeps you tied to the arrangement, keeps the restriction on your property for a further minimum of 12 Months, keeps you on the Insolvency Register for a further 15 Months and continues the dormancy of your Credit Profile.
· You could be approved for one of our products as full and final immediate settlement of your IVA. If you decided to proceed with this offer you could have successfully settled your IVA in around 28 Days’ time on receipt of the complete, approved application documents. The documentation to remove the restriction over your property will be actioned within 3 weeks after your IVA is settled and we will work with Credit Fix to ensure that this happens.
· You will be removed from the Insolvency Register in 3 months after your IVA settles and the new charge will be registered on your credit profile which will provide that much needed activity on there and impact your Credit Score over time.
We also like to advise at this stage there is no requirement for you to take one of our products to exit your IVA early, if you do not wish to do this you can independently attempt to Remortgage and if this is not successful for you the alternative would be to extend the term of the IVA for a further 12 months to enable creditors to receive this extra payment.
At present it is possible to add a further 12 months to the IVA term and for you to make a further 12 payments, so you pay and be held in the IVA for 72 rather than 60 months.
This method means that you are unlikely to be able to improve your credit score until month 72 at earliest and the restriction will stay on your home until the at least a month after you make that final extended payment. You will be removed from the Insolvency Register 3 Months after your IVA settles which could potentially be 15 Months from this point.
What is your next step?
Please refer to the attached Equity Assessment Documents:
Fact Find – Please complete this with up to date information. This will allow us to assess your equity and case based on your current circumstances. When completed please sign and return.
Initial Disclosure Document – This details us as a company, who we are affiliated with and regulated by. This is for your information and file.
Use of your Information – If we were to proceed to Credit Search we require your authority to do so. Please read over this document, sign and return.
When you have completed and returned the documents (please note this can also be down via email to [EMAIL="info@justlending.co.uk"]info@justlending.co.uk[/EMAIL]) we will complete the following steps:
Online Valuation - We will conduct this on your behalf at our cost which will give us a valuation range for your property. We will advise you of this information so that you can also know what the projected market value is.
Credit Search - We require your consent to do so please advise if we have the authority to do this. (please refer once more to the Use of your information document). We are fully aware that your IVA will show however we require the up-to-date credit search to show your Mortgage activity and payment along with your current credit score. This is a very important part of the equity assessment as your credit profile has been in a state of dormancy since you entered into your IVA and there has been very little activity other than your monthly mortgage payment. Should you decide to proceed with one of our products as way of full and final settlement of your IVA this will be registered on your credit profile and provide much needed positive activity which should impact your credit score. In the future and at your request we can provide you with an up-to-date search which will show the positive increase in your score.
Completion of your Equity Assessment Report - We gather all of the information that you and your Insolvency Practitioner has provided along with the up-to-date details pertaining to your property and current credit status and this forms your Equity Assessment Report. From this we are now in a position to look at products and options that are available to you and most viable for you. We will contact you at a time convenient to you to discuss this.
We will be in touch over the course of the next few days to discuss your Equity Assessment, or alternatively please feel free to contact us on 0141 255 1380 to discuss or if you wish to progress your Assessment please complete the required documents and return to us.
We look forward to working with you to successfully settle your IVA.
Kind regards,
Kirsty McLaren
Equity Assessor
0
Comments
-
Debt camel has covered this
http://debtcamel.co.uk/perinta-loans-end-iva-early/
I really don't like that letter - 'we are talking about Credit, not Debt.'0 -
Thanks for the link fatbelly.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 348.6K Banking & Borrowing
- 252.2K Reduce Debt & Boost Income
- 452.5K Spending & Discounts
- 241.3K Work, Benefits & Business
- 617.8K Mortgages, Homes & Bills
- 175.8K Life & Family
- 254.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards