If you need to make payments for your multiple debts but cannot afford to sell your house, an ecured loan IVA may be the right solution. This kind of repayment plan allows you to make payments after covering the costs of your essential living expenses. Another benefit of ecured loans is that you don’t have to give up your home to qualify for this type of loan. On the other hand, a mortgage may require you to give up equity in your house. This may affect your IVA eligibility. For this reason, it is advisable to seek advice from a debt management professional before trying to file for an IVA.
The IVA process is easy to complete. A specialist advisor can help you through the process and explain the benefits and disadvantages of filing. Once you have decided to file for bankruptcy, you should know that the IVA process takes only a few minutes. But it is crucial to do your research before deciding to file for this. Once you know the pros and cons of an IVA, you can proceed with it with confidence. This process will help you repay your debts and restore your credit rating.
If you are struggling with massive debts and cannot afford to pay back the full amount of your debts, an ecured loan IVA is an excellent choice. With this option, you can keep your home, motorbike, or caravan. Even if you can’t afford the full amount, ecured loan IVAs can restore your credit rating. If you are currently in the market for a new home, you may want to consider an ecured loan IVA instead of a mortgage.
In contrast to a traditional loan, an ecured loan IVA won’t last longer than six years. It also comes with a higher interest rate. While you can’t make regular payments for more than six years, an ecured loan IVA may be the best option for you. You can choose a specialised lender or hire a broker with full market access. You might want to consider paying off the IVA early after three years to free yourself from the IVA restrictions and improve your credit score.
Whether you want to take out a second charge mortgage or not depends on your personal situation. If you have enough equity in your home, you can remortgage to raise a lump sum that will enable you to pay off your IVA in full. Equity release is a popular option among borrowers who want to take advantage of it. However, be aware that this option comes with strict limits and terms. Also, lenders may charge you a higher interest rate than your current mortgage.
In general, a secured loan IVA will require at least 75 percent approval from your creditors. In addition, it is important to note that in some cases, the IVA may require you to give up some equity in your property in order to qualify for an IVA. This way, the loan will be approved, and you won’t have to pay higher interest rates in the future. In some cases, you can also re-finance the secured loan to High Street rates in the future.