IVAs and CVAs
An IVA (Individual Voluntary Agreement) or CVA (Company Voluntary Agreement) are agreements made between you and your creditors. They differ because an IVA is for an individual and a CVA is for a company, but the aim behind both is the same: you enter into an agreement to pay back a portion of your debt over a specific period using a payment plan that you can afford.
With regards to your negative equity property, it is a way moving on from your outstanding debt with an amount of debt written off and repayments that you can’t keep up with. A CVA is typically for companies that own properties with negative equity. Your debts are frozen during this agreement, and any other debts are written off once you’ve completed the CVA. You can still run your business as well during this period.
An IVA is for individuals or sole traders. There are two key differences here: all of your unsecured debts are included in the agreement, and your credit score is affected. Other than that, everything is the same – your debts get frozen during this period, and you agree on affordable terms to pay them off.
Setting up an IVA or CVA can be a great option when it comes to managing the residual debt from negative equity with ease. It can help you pay off your debt in a more manageable fashion while ensuring you do not keep adding to it.
Mortgage debt restructuring
Debt restructuring is where the original terms of your mortgage are renegotiated to make the debt easier for you to pay back – for example, extending the term of your mortgage.
When done correctly, this can be an effective way of removing the current problem allowing you to retain your property and make inroads into your debt in an affordable manner. We can try to restructure your mortgage terms so that you only have to pay off the equivalent value of your home.
Mortgage re-broking is where we can help you find a more suitable mortgage product with a different lender. We analyse your current financial situation and present your case to a new lender. By doing this, we can arrange for a revised version of your mortgage contract that better suits the situation you’re in.
Like everything in this guide, success isn’t always guaranteed and it depends on each case. But it’s certainly an option to help create a more affordable mortgage contract where you aren’t faced with losing your home.
One of the contributing causes of the market crash in 2008 was the miss-selling of mortgages. It is well documented, especially more recently, that banks and high-street lenders were handing out mortgages to almost anyone. As a result, many people ended up with a mortgage that they couldn’t really afford from the get-go.
If we can find evidence to support a claim that you were mis-sold a mortgage, we can help fight your corner and have been successful in getting clients redress.
If any of your properties are in negative equity, then you should start thinking about taking the steps to resolve it; by doing nothing, you could be taking a gamble. CD Fairfield has a 91% independent rated NPS score and excellent relationships with lenders throughout the UK. As such, we’re here to lend a helping hand and offer solutions to free you from your negative equity.
Get in touch with us on 0161 660 4403 for a no-obligation chat – we’ll see if we can assist you. As always, if we find that we are unable to help you with your case in particular, we can point you in the direction of certain organisations and charities that may be able to help.