after settleing an IVA

[reg.t]

after settleing an IVA, be it seeing out the final payment after 5 years or settling early with a lump sum, how long does this stay on your credit record and how will it effect you getting credit such as a mortgage at a high street rate?

[Storm]

Stays on your credit file for 6 years.

It will effect your ability to obtain credit throughout the life of the IVA.

Mortgage lending is different in terms of underwriting and whilst you would need to use a subprime lender the rates are not as harsh as you may imagine. You would however need to find a deposit of between 10-15%.

[MelanieGiles]

Hi reg and welcome to the forum

Generally for six years from the date the IVA commenced. I find that you can generally return to the "high street" one year after your IVA has concluded, although it is interesting to note that several high street lenders are now offering good value mortgages to people who are in IVAs - supporting my personal view that you guys offer the best security going - debt awareness and household budgeting skills.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[reg.t]

Thanks guys, I am currently in an IVA and have been contacted by a company to try and remortgage me to get out of it now, they obviously charge a fee for the service and the mortgage brokers do the same, is this a good idea or would it have the same effect as me searching for a mrtgage myself and then making the offer to the Supervisor of my IVA? If I could make the same offer to my Supervisor witout the fee and remortgage without the broker this would obviously make sense. Also with reference to my previous question I will be on a two year fixed rate of 6.39% and then it reverts back to 2.8% above the base rate, I need to be sure that I will be able to get a high street mortgage after the 2nd year as I will not want to pay the extremely high rate after those two years.

[MelanieGiles]

I would beware "Greeks bearing gifts" if I were you and find your own mortgage broker who specialises in the adverse credit marketplace. There is no harm, however, in seeking a second opinion, but I find these companies who circulate people from the IVA register little more than ambulance chasers.

Was your property already included within the IVA by way of a 4th year revaluation provisions. If so, and early equity release may not be sensible, but I would speak to your IP directly who may be able to give you an idea of a settlement figure.

6.39% for someone in an IVA does not seem a bad rate - but 2.8% over base is horrific! Speak to Welshboy who regularly posts on this forum, and is a specialist advisor, for more definitive advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Andy2]

If you sign up for the fixed rate of 6.39% (which is not bad at all for an IVA holder seeing as base rates are 5.25%) then it will probbaly have a "lock in" for another period after the initial two years.

[Adam Davies]

Hi
I have recently remortgaged on a 7.09% fixed rate for two years and with no tie in penalties after the two years.Leaving me free to look for a better rate in 2009.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[reg.t]

I have no tie in after this initial period, I am free to look elsewhere without penalties. My IVA did have a 4th year clause and I did not want to continue paying the £813 a month I pay at the moment to then have to remortgage in 2 years time once the 4 year period is up, effectively paying £813 x 24 more than if I "got out" now. I just want to be sure that in 2 years I will not be stuck on the 2.8% above base rate mortgage and will be able to find an alternative, prefferably on a high street rate. My only concern is that it will only be just over 4 years from the start of my IVA meaning I will still have it on my file for 2 more years!

[Adam Davies]

Hi
I think realistically you will not be able to get a High st rate until your six years are up,however like me you could get a fixed rate again to see you through until then.
If you are looking for a broker then you could do no better than contacting Welsh Boy,who posts on this forum,he has helped many on this forum find a suitable mortgage,his email is antony.parsons@btopenworld.com
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp