IVA - Insisting we apply for mortgage

Harry_Hammer

My IVA organiser NTF Financial Solutions have written to say, due to my 5 years coming to an end and us having approximately £100k equity in our property, we need to apply for a remortgage. We have been informed, if we are unsuccessful in an application for a mortage, the IVA has to run for a further 12 months.


They are arranging for their own Mortgage Broker to contact us (LM Protection) to discuss the situation.


At the time of our IVA we were advised we couldn't applying for credit over £250.00, so going for a £175k mortgage appears madness!


What are peoples thoughts?
Just as you start to see the light, another obstacle is put in front of you......

Tinks74

Assuming your Proposals did not exclude any potential equity in your property this is a perfectly normal procedure.
Although I do not believe you have to use the broker suggested by your IVA provider and any potential remortgage has to be fair and affordable, i.e. You cannot be forced to take out a remortgage with a ridiculous interest rate or unreasonably high repayments just because it is the only one you are offered, but check with someone who knows more.

National_Debtline

Hi Harry


Yes this is very much standard practice, and will (I presume) have been legislated for in the terms of the IVA agreement you signed at the outset.


You should ask NTF if they adhere to the "IVA Protocol". These are guidelines designed to ensure best practice and protection for consumers. They include checks and balances on how equity should be released, so that you do not end up being expected to pay an unaffordable remortgage, as Tinks74 suggests above. At the time your IVA began, it is likely to have been the 2010 version of the Protocol that was in effect. This link takes you to the guidance including specific references to equity release:


http://!!!!!!!.com/z3emsvj


Dennis
@natdebtline

National_Debtline

Original URL seemed to upset MSE page format so here it is again:


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/329139/The_Simple_Consumer_IVA_Protocol_-_2010_version.doc


Dennis
@natdebtline