5 years finished paying IVA

Adam11

Hi,
First time posting.
Basically my 5 Yr term has come to an end on my iva, from the beginning they have said they will look at equity at the end of the term etc. They forecast I would pay £9k back over the 5 yrs out of the £17200 and pretty much 10k would be written off. Great I thought. They have been in contact and want me to take out a £13500 secured loan for the next 18 years paying back £150. I can't afford to pay that back until I pretty much retire. By secured loan at the end I would of thought a short term standard low rate loan. I will end up paying another £31k back over the 18years.
Thanks for any advice

sourcrates

This is becoming more and more of a thing now, been asked to take out secured borrowing to end your IVA, personally i would not do it, they used to just readily accept a further year of payments, if re-mortgaging was out of the question, mind you its quite possible the loan would not be granted either.

Ask what other options you have, if non of this is appealing, you could just stop paying the IVA, and allow it to fail, not really what you want to do at this late stage, but, if what they are offering is not something you can live with, then it may be an option.

Contrary to popular belief, you will not be made bankrupt, its more than likely you will be able to set up payment arrangements for the remaining balances.

Its your decision really, IVA`s are not always as straightforward as they should be unfortunately.

PrettyKittyKat

Have a look at your IVA proposal.terms and conditions EXACTLY what it says regarding the equity in your property. Does it mention remortgage only or does it state getting a secured loan? If you can post it on this post and we can advise

Adam11

Unfortunately it Says remortgage or secured loan.

Adam11

Basically I will end up paying £32,000 back on this secured loan. I only had £5000 left to pay. According to them they can only find enterprise finance who will loan me the money but at a minimum £10k and at 11%

PrettyKittyKat

Does your IVA proposal include these terms?
-Remortgage payments must not exceed 50% of the current IVA payment.
-Remortgage must not extend beyond retirement age or, if longer, the term of the current mortgage

From what you have said your current iva payment is £150 therefore this would breach the first term and therefore is not suitable. You say 'until your pretty much retire' but not how long you have left on your mortgage term so the second term may or may not be relevant.

Neutrinno

PrettyKittyKat wrote: »

Does your IVA proposal include these terms?
-Remortgage payments must not exceed 50% of the current IVA payment.
-Remortgage must not extend beyond retirement age or, if longer, the term of the current mortgage

From what you have said your current iva payment is £150 therefore this would breach the first term and therefore is not suitable. You say 'until your pretty much retire' but not how long you have left on your mortgage term so the second term may or may not be relevant.

OP hasn't stated his IVA payment is £150, so I'm assuming £300 IVA payment; he/she will need to clarify though.

It is based on the latter of both terms, so it sounds like state retirement age is the latter of both in this case.

OP can you clarify further? Whilst it may be daunting looking at the total amount repayable on such high interest secured loans/second charge mortgages, it is worth remembering you will be in a much stronger financial position within the next 12-24 months once your IVA has completed and credit file repaired. You could review your mortgage/secured loan again then with the aim to get back on a lower rate of interest/consolidate into a high street mortgage etc.

PrettyKittyKat

Neutrinno wrote: »

OP hasn't stated his IVA payment is £150, so I'm assuming £300 IVA payment; he/she will need to clarify though.

It is based on the latter of both terms, so it sounds like state retirement age is the latter of both in this case.

OP can you clarify further? Whilst it may be daunting looking at the total amount repayable on such high interest secured loans/second charge mortgages, it is worth remembering you will be in a much stronger financial position within the next 12-24 months once your IVA has completed and credit file repaired. You could review your mortgage/secured loan again then with the aim to get back on a lower rate of interest/consolidate into a high street mortgage etc.

Op states that the forecast repayments was £9k over 5 years, which is £150 per month.

Simmo71

I've just had similar with my IVA now that the 5yrs is up. I got a letter from my mortgage provider confirming they would not consider any application for further borrowing, and also went online and got 2  'declines' from Nationwide and HSBC (they tend to set the bar pretty high for any applicants). Those three seemed to satisfy my insolvency practitioner that I'd made reasonable efforts to release equity into the IVA and they agreed to another 12 months' payments to close it all off.

I'd try the above if I were you, see if it puts them off trying to squeeze more out of you.