New legislation - should I bother?

sourcrates

All IVA`s attract fees, and regulation of IVA`s is not as good as it should be, so lots of companies go out of their way to "sell" them to you, regardless of whether its a suitable choice for you, or not.

This is because they can make an average of 3-6k (or more) off every IVA sold, as the fee`s charged do vary, so mis-selling is rife.

In your case, as homeowners, you probably made a good choice, as you have precious little else in the way of options, they are suitable for some people, like I said previously, homeowners especially.

They are commonly flogged on social media, those adds that promise to "write off 70% of your debt", or "new Government scheme" adds, they are just lead generators for IVA companies, you don`t always get your debt written off, its down to your personal circumstances.

If you don`t have a house, or any assets, and owe a lot of money, you might as well just go bankrupt instead, or if its less than 30k, and you meet certain other criteria, a DRO would be preferable, if you wanted to stay informal, then there`s the good old DMP to fall back on.

johnandkymberley

I don’t think we could get a debt relief order though as we are home owners? 

Re the remortgage, now my husband found something. I will copy and paste 

•The incremental cost of the re-mortgage will not exceed 50% of my monthly contribution.

•The net worth released will not exceed 100% of the remaining outstanding debt.

•The remortgage term does not extend beyond the later of my state retirement age or the existing

mortgage

 Now relating to the first bullet point I'm taking that as my mortgage shouldn’t increase by £50 per month. My mortgage advisor is a good friend and will do the best he can but no way he is that good that we can re mortgage for thousands of pounds + interest rates and pay less than £50 extra per month? Please correct me if I’m wrong there as I’m interested in that 

I have also just noticed inconsistencies in my agreement. The car has been put in my name - it isn’t mine and so has a loan that isn’t mine. Whether that is relevant, I should have picked it up or it doesn’t matter I don’t know but as I’ve said, I’ve only just noticed. Is that mis sold or !!!!!! up!!! 

RAS

I'd start with

How long to your state retirement age? and end of mortgage? Anything to indicate whether either is the defining factor?

Anything defining "net worth?

johnandkymberley

It says this 

•The remortgage term does not extend beyond the later of my state retirement age or the existing

mortgage - so my mortgage can’t get longer or past my retirement age? 

I can’t see a net worth, can you guide whereabouts that would be?

It does say this… 

Financial Mis-selling and other Legal Causes of Action £0.50p

johnandkymberley

Our mortgage is till my husband is 58, I’m 33 now, husband is 38

RAS

This might be interesting 

IVAs - do you have to get a secured loan? · Debt Camel

johnandkymberley

I’m feeling gutted like a fish just half way reading that down but carrying on… 

johnandkymberley

That gentleman’s case is awful. I’m glad he was offered the ‘cheaper’ option in the end though. I do wonder why on Earth they think you can get an unsecured loan? I can’t imagine a credit report with an iva on in this climate would be offered anything! 

But going back through my own circumstances that are slightly different - aren’t we all. The £100 minimum we pay per month is affordable and I would imagine no one would offer a remortgage so another year/2 years of £100 would be disappointing but also better than a re mortgage. 

I read about the ‘Brussel’ loans. My husband and I read the website and think they are just extortionate and so expensive.

What happens that in your contract you are required to get a secured loan but can’t afford it? So are offered 2 more years of an iva for £100 = £2400 rather than a secured loan of £250 per month? 

The reason we pay so low is because it’s only my husband that works. We have 3 children 5 and under (1 x 5 year old and 3 year old twins) that I am the main carer for and wouldn’t be able to afford childcare. When the iva ends they will be 9 and 6 and again I would never be able to afford wrap around care. But that is one of those things that I would deal with that the time. My mum doesn’t help out and wouldn’t offer to pick them up. My dad has kind of washed his hands with me because of my life and the shame I am without working, this debt is great for him as it’s an extra laugh to his day despite being for life threatening treatment 😡😡😡 . Anyway the point is, nothing for free, no support available. 

However this new advise regarding cost of living is positive surely?

I feel sick with the fact I will loose my house, that is my main worry. I don’t even care about the car. Yes we need it but if I HAD to live without it then life would carry on but without a house it won’t 

RAS

Just keep on paying the IVA and when you get to the point where re-mortgage is an issue, take advice from people outside.

Meantime, get together all the documentation, and any emails etc regarding your signing up to the provider. If they are still doing adverts, record them. 

All possible evidence for mis-selling later.

A bit of a crack-down has started on providers and their advertising. It could go anywhere  the next two years.

johnandkymberley

I’ve got all emails etc and paperwork is all saved. I will look online if there are any adverts though but they seemed quite reputable when we were seeking advice. 

This is one of those things that is ‘if it’s too good to be true it probably is’ 

But for now pay the £100, keep our heads low and deal with anything as it comes I suppose. Something we have to do in every circumstance, we could always live in ‘what ifs’ or similar. 

All very interesting though that there’s been recognition about them