I am 3 years through my 5 year IVA and will need to pay a 6th year unless I am able to remortgage because I do have available equity. My payments are £242 per month so my understanding is 24 months x £242 and if im unable to remortgage a further 12 x £242. A balance of £8712.
My girlfriend has offered to pay the balance so we are able to build my credit score before we try for mortgages in a couple of years. I know the IVA remains on my credit record for 6 years but im hoping paying it off and building my my credit up for a year or 2 will help?
So, my main question is, if the balance owed is £8712, what would likely be an acceptable amount to offer?
Depending on the company you are with then an offer of £6k could be good.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
As you will be circumventing the equity release process it is usual to assume the extension. So, your offer should be based on a further amount of £8.7k being due.
Were it me making the offer, I would look to be offering around £6K - £7K.
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.
Take advice from mortgage brokers with experience if helping those with past credit problems- they can offer advice re how best to go about rebuilding. The forum has Ryan and or Shaun who maybe able to help.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Mon Aug 23, 2021 5:44 pmkevin452 wrote:
I'm hoping paying it off and building my my credit up for a year or 2 will help?
Early settlement by itself won't change your credit score for the remainder of the 6 years. But it will let you take out some "bad credit" products during the next 2 years that, used correctly, will start the process of getting "good" marks on your credit record. e.g. LOQBOX and a "credit improver" card. Then when the IVA disappears, that new credit will give you a good credit score.
Even after the 6 years, you will usually have to declare your IVA in a mortgage application as you may be asked specifically about it or asked if you have ever been insolvent. But many lender will be happy to lend to you at that point if you have a reasonable deposit, you should not have to pay for an expensive bad credit mortgage. Don't take potluck and apply direct, hoping you haven't picked a lender that will reject because of the old IVA. Go through a good broker.
Both Ryan and Shaun are great for those who have come out of an IVA and have vast areas of experience between them. Luluj can certainly vouch for them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
