Sprout Loan for IVA

Rachelm91

Hi,

I’m currently 29 month into a 60 month IVA, I’m considering getting a sprout loan to end it early. However, I don’t know whether I can approach sprout loans or if I have to be referred from my Iva company?  

Has anyone had any experience using them?

thanks

sourcrates

A fairly recent change to the IVA market, now means you can end your arrangement early by taking a loan provided by a specialist company for that purpose.

Personally I would not do it, you will extend the period you are in debt, and pay further interest, and for what ?

So you can re-join the credit game, and get into debt again, no thanks, wouldn`t touch one with a bargepole.

fatbelly

Debt camel wrote about them here

https://debtcamel.co.uk/perinta-loans-end-iva-early/

sourcrates

In September 2018 the Insolvency Service considered early exit loans as part of its review of IVA regulation. It said:

The loans…  ultimately cost the debtor substantially more… are sold on the basis they will help the debtor in the long term, by improving their credit rating. There does not appear to be any evidence that this is actually the case…  By concluding the IVAs early the IPs concerned will also benefit by not having the ongoing cost of managing the IVA so there may well be a conflict of interest.

This is the problem with a poorly regulated debt option, the rules can be changed at the IP`s whim, I don`t like the idea, debt camel doesn't like the idea, the IS don`t like the idea, in which case its probably not a good idea.

Rachelm91

I understand that I will pay more in the long run, but there is always lots of overtime I can pick up at work and as a carer I can’t really turn it down. At the minute any overtime I do I can keep myself according to my Iva company which helps as I’ve recently moved out of my parents house and in with my partner, however once we come out of lockdown overtime will have to be paid in to the Iva so I will end up paying more whether I stay in the Iva or not but with the loan I will have the freedom to do as much overtime as I like without paying it all in to the Iva, also I know the payments will not be more than the Iva which I can afford.

I would like to hear from people who have had experience with such companies if there is anyone out there? 

Thanks

sourcrates

I suspect they will not be an option for much longer, they formed part of a review by the IS in 2018, so far no further information is available, but there use is questionable.

mrcactus

Did you end up going for it? I just signed the contract now for mine. Extra 3 months payments but now I don't have to worry about I&E reviews, overtime and bonuses at work! Let me know 

nathswindon

Mr Cactus....

What about the final year clause in which the IP can force you to apply for a remortgage? Has that been waved also?

MrFrugalFever

I used Sprout Loans back in May/June for a F&F after 3 years and 10 months in to IVA.

Fairly painless application, I did a lot of research and asked many questions with them prior to going down the route, spoke to my IVA company too. There are some points to note with Sprout Loans though, which they will go through with you as part of the application process.

i have recently received my completion certificate and have proceeded to make over payments to reduce term of loan so that it finishes on or before the original 60 month IVA end date.

mrcactus

MrFrugalFever said:

I used Sprout Loans back in May/June for a F&F after 3 years and 10 months in to IVA.

Fairly painless application, I did a lot of research and asked many questions with them prior to going down the route, spoke to my IVA company too. There are some points to note with Sprout Loans though, which they will go through with you as part of the application process.

i have recently received my completion certificate and have proceeded to make over payments to reduce term of loan so that it finishes on or before the original 60 month IVA end date.

I went for the loan from sprout. IVA was only extended by three months. I was making £160 min payment to IVA each month but my wage went up so was expecting my payments with IVA to go up as well. Making £175 per month payment to sprout.

Having the sprout loan is better for me due to student loans/grants and bonuses at work I kept declining due to having to pay most of it to my IP anyway. I know for the next 26 months, the payment to sprout will stay the same and I don't have to do I&E reviews again. I think it benefits some people and others not so much....I think you have to do your own research and make up your own mind after speaking to your IP and sprout themselves and ask as many questions as you can.

Currently waiting for completion certificate.