Mortgage (for new buyer) after an IVA

A question about : Mortgage (for new buyer) after an IVA

I have posted this on the IVA board too - sorry for double posting but i wasn't sure which board would be most suited.

Hi, I wondered if anyone had much experience of life after an IVA? My husband has an IVA which is due to finish in 18 months time. He started the IVA before we married and I have good credit (inc a mortgage).

We have been saving as much as poss for to increase our deposit for when we're able to buy a house together.

I wondered if anyone knew how soon after completion of an IVA it would take for a mortgage company to show any realistic interest in lending to us. I was hoping that my credit history would help balance things with our application and I appreciate that in today's climate no one would touch us now but I'm all for a longer term plan.

In short, I am asking how soon you would expect it to take for us to be accepted for a mortgage together? We will have 25% deposit saved by the time the IVA actually finishes.

Any advice would be really appreciated, especially from those who have gone through it and come out the other end with a (realistically affordable) mortgage.

Thank you :rolleyes:

Best answers:

• I don't know anything about IVAs, so ignore me if I have got the wrong end of the stick. Could you not use the savings to pay off the IVA quicker or are IVAs only for a fixed period? If the IVA is paid off wouldn't it then fall off your husband's credit report quicker?
• I am going to bump this, cos it's really not my area. I thought all debts remained on file for six years after they were settled, so after an IVA finishes. But I could certainly be misunderstanding.
• HI Doelani
  Can I ask who you got your mortgage with, we have been trying to remortage to complete an IVA but am finding it difficult to find a company, also do you mind saying what your interest rate is for your mortgage.
  Thanks
• Before thinking about a mortgage etc. He would do well to get a copy of his credit file and have good inspection and make sure it i correct.
  I am about to complete my IVA after 5 years. I have obtained a copy of my credit file and there are a number of Debts that were sold to Max recovery who then placed a default on my account 2 years after I started my IVA which is incorrect.
  I am in the process of contacting parties to get this tidied up.
  You default will drop of the report after 6 years of the default
• I did a full and final IVA in August 2007. It completed early last year. I tried no end of brokers to find me a new fixed rate mortgage. No high street bank would touch me even though we had plenty of equity in the house and my wife had a perfect credit history. Most lenders these days will not touch you unless your IVA has been completed at least 3 years or you will be looking at one of few adverse lenders left and their rates will be between 8-13%. In my case we tried as a last resort my wifes bank HSBC. They look at each case on its own merits and since all my defaults were all satisfied and we had plenty of equity they gave us a mortgage. So it might be worth trying them.
• You don't necessarily need to wait the full 6 years for the IVA to fall off and there is nothing stopping you applying for mortgage to get a feel of what you and OH could be offered however I wouldn't even start that process until you check his credit reference file and clean it up if necessary.
• Getting a mortgage of course depends a lot on how good/bad your credit file is. The first steps will be to get or your defaults marked as satisfied once the IVA has completed. I would advise finding a good broker who deals with the adverse side of the market. This will save you a lot of time and trouble. The problem I found was that most bank at the moment as soon as you mention IVA just dont want to know. You cant even apply they just say no. One example we were told by one broker to move our bank account over to Abbey as they were one of the better lenders. Having done that Abbey then changed their policy about 6 months later and now they will not touch anyone with poor credit. So having done everything Abbey asked us to they then still said no.
• I agree with doglover, i enquired about settling early but was informed i could but was little point as it would take a couple of months to agree and i could end up paying more if my creditor thought i could afford it..........hence......personally i would advise against this.