Struggling with debt? Ask a stepchange debt adviser a question

stu12345_2

Debtfreegoals said:

When doing an annual review, do stepchange need to see payslips every year?

they never see them , a dmp is an informal agreement, they take your word on what you earn, hence so do your creditors.

fatbelly

I'm sure you will get a definitive answer tomorrow. In the meantime

https://www.stepchange.org/clients/completing-my-review-online.aspx#What Happens If I Do Not Complete A Review?

StepChange_Aidan

Debtfreegoals said:

When doing an annual review, do stepchange need to see payslips every year?

Hi,

We require proof of income when the DMP is first set up, but it’s not needed for the annual review.

Regards,

Aidan

tksnota

Hi

I have a few questions 

1. i want to know if step change has a clause in their contracts Iva contract that 54months I will be required to get in touch with a specialist lending to release equity on my house to pay as much as possible to my original unsecured loan or just stick to the extra 12 months payment resulting to 6 years of payments 

2. I’m only allowed to release equity for the half of the property. Since I’m an Iva  might not be possible to secure remortgage with favorable rates, will you propose 3rd charge (I have HTB) on my property to release equity 

3. Why I always read IVA is better than DMP when someone has mortgage? Can DMP do the same thing? Need to understand about it so kindly give some explanations 

4.  I’m concern about taking the path of IVA even I can pay the monthly payment because of the equity release. Please provide more context about this matter.

Floss

tksnota said:

Hi

I have a few questions 

1. i want to know if step change has a clause in their contracts Iva contract that 54months I will be required to get in touch with a specialist lending to release equity on my house to pay as much as possible to my original unsecured loan or just stick to the extra 12 months payment resulting to 6 years of payments 

2. I’m only allowed to release equity for the half of the property. Since I’m an Iva  might not be possible to secure remortgage with favorable rates, will you propose 3rd charge (I have HTB) on my property to release equity 

3. Why I always read IVA is better than DMP when someone has mortgage? Can DMP do the same thing? Need to understand about it so kindly give some explanations 

4.  I’m concern about taking the path of IVA even I can pay the monthly payment because of the equity release. Please provide more context about this matter.

If this is a shared ownership property then you may find you cannot raise enough by releasing equity to make that final payment - you will not be able to release all of the value of the 50% that you own.

tksnota

It is a shared property with Help To Buy. 

How can I release my equity if I will not be able to remortgage? 

Will I need to secure a 3rd charge using a secured loan on my property just to release the equity? Will I need approval from Help To Buy?

StepChange_Patience

tksnota said:

Hi

I have a few questions 

1. i want to know if step change has a clause in their contracts Iva contract that 54months I will be required to get in touch with a specialist lending to release equity on my house to pay as much as possible to my original unsecured loan or just stick to the extra 12 months payment resulting to 6 years of payments 

2. I’m only allowed to release equity for the half of the property. Since I’m an Iva  might not be possible to secure remortgage with favorable rates, will you propose 3rd charge (I have HTB) on my property to release equity 

3. Why I always read IVA is better than DMP when someone has mortgage? Can DMP do the same thing? Need to understand about it so kindly give some explanations 

4.  I’m concern about taking the path of IVA even I can pay the monthly payment because of the equity release. Please provide more context about this matter.

Hi there

Thank you for getting in touch.

I'll gladly help as much as I can. In the 5th year of an Individual Voluntary Arrangement (IVA) you may be asked to attempt to remortgage so that a lump sum is available to pay to your debts or, a family member or friend can make the lump sum payment on your behalf. 

You only need to consider a remortgage if you have equity available (equity is the value of what you own in the property) If a remortgage is not possible, you will have to make 12 extra payments to the IVA. This will take the length of the IVA to six years in total.

A Debt Management Plan (DMP) is a less formal solution to help you deal with debts, but each have their benefits and consequences. 

If you would like to find out which solution may be best for you, I would recommend seeking free and impartial debt advice. 

You can get started with StepChange here. 

I hope this helps. 

Patience

tksnota

A few more questions 

1. When you say lump sum are you telling me the outstanding amount? E.g. total debit is £90k wherein £30k payment for Iva and by 5 years pay off the £60k. Right?

2. I might have equity on my property (only half because the other belongs to wife) but having an IVA will not allow me to remortgage. Will Stepchange’s proposed specialist lender push for secured loan or 3rd charge on my house to pay the outstanding amount?

3. I have Help To Buy, Mortgage and can’t remortgage due to IVA. Will that makes the possibility of 12 months extra payments happen or there are instances that lump sum is still achievable even with the above circumstances 

StepChange_Aidan

tksnota said:

A few more questions 

1. When you say lump sum are you telling me the outstanding amount? E.g. total debit is £90k wherein £30k payment for Iva and by 5 years pay off the £60k. Right?

2. I might have equity on my property (only half because the other belongs to wife) but having an IVA will not allow me to remortgage. Will Stepchange’s proposed specialist lender push for secured loan or 3rd charge on my house to pay the outstanding amount?

3. I have Help To Buy, Mortgage and can’t remortgage due to IVA. Will that makes the possibility of 12 months extra payments happen or there are instances that lump sum is still achievable even with the above circumstances 

Hi,

Depending on how much equity you have in the property, you may be expected to look at re-mortgaging in the last six months of a standard 5-year IVA term. It is currently difficult to get a remortgage during an IVA, so in most cases this results in another 12 months of payments.

The lump sum raised from a re-mortgage wouldn’t be expected to cover the full outstanding amount owed to the creditors, neither would you be required to have any additional secured loans or charges on your property through an IVA.

There’s some more information on how an IVA would affect you and your home here.

I can see from your other threads that you’re now considering a DMP instead. If you need any help setting one up, or want to review other debt solutions, please get in touch.

I hope this helps,

Aidan

Looking4silverlining

Hello. I hope that I am asking in the right place? 
I am self employed and currently have approx £25,000.00 in credit card debs with 6 different cards. This all came about after my partner suffered an awful illness and neither of us could work for a long time. I have been making the payments ever since (6 years now) I have managed to get some of the debt into 0% interest deals but these are going to come to an end soon and I am now I the position of not being able to go any further at all with borrowing. I would really like to consolidate all of them and get the interest down. I don't know how as I don't own any big capitol. I own my own van (£9k) which is my only hope of earning with my business so I don't want to lose that. I don't think I can do a DRO or IVA as I want to keep the van. Can anyone advise? I am starting to get very stressed and worried about it now. Thanks in advance.