Any advise about how to apply for a mortgage after a recently completed IVA ?

[wh523480]

Hello,

I recently completed my IVA in July this year and checked my credit report with Experian. I purchased my Credit Score and it showed "409", which was "Good." My IVA was removed from the insolvency register too, which was great, or so I thought!

I recently tried to apply for a mortgage in principle after with my local estate agent after putting our house on the market, but today I received an email saying I had been turned down because, apparently, my IVA has not been finished for the minimum 3 years that the lenders require!

So what do I do now? Do I have to wait for 2.5 years or are there any other avenues I can try; we have a child as we need more space. Is anyone else in the same predicament as me and does anyone have any advise about how to apply for a mortgage?!?

I have never missed a mortgage payment so I am annoyed I am now being penalized for having an IVA!!

Thank you.

[plasticdaft]

Contact a whole of market broker and be upfront about the iva as they will perhaps know which lenders are less strict.

Paul

[luluj]

We have two brokers on the forum, Ryan and Shaun.... Details are in the meet the experts link or a-z list of members. I can personally vouch for the work of Ryan.

[Ryan]

Hi,
You will need to check to see if all your credit files have been updated and are all clean.
If you would like to get in touch directly, my contact details are under the experts tab on the left hand side.
We have helped numerous others from the forum in the same position

[nonewdebt]

Your(poster) email is the clearest indication that I have heard about the situation with post IVA and getting on the mortgage ladder.
I think this is certainly a blow to many hopefuls.

As you already own a property and with callateral I find the lender response surprising?

With the 5% newbuy government support for new home buyers in place now and it wouldn't go on forever, and being denied for another 2 years to get the loan is not really what prospective buyer wants to hear.

The specialist lenders can assist but as Shaun has alluded to there is a bigger deposite of 15% compared with the 5% from high street lenders for all properties now. But it maybe the only option.

I do not know what else to say but as mentioned, ask brokers around and explain your circumstances and see if they could maybe suggest a lender willing to help.

House prices are going up fuelled by Newbuy and so time is of the essence.

[Foggy]

Hi. There is no "blanket" 3 year post IVA criteria. Some lenders have their own in house criteria of up to 6 years, but many lenders are not so strict.

We have had many mortgages placed soon after the finish of an IVA, mainly through out resident experts, Ryan and Shaun. We have also heard from several posters who have had mortgages placed direct with high street lenders -- the latest, I believe, was with the Halifax on a new build a few weeks ago.

We are not eternally dammed, and even squeaky clean borrowers have many hoops to jump through at the moment (hence the need for government schemes -- which, ultimately, are self defeating in that they push prices up in the long run).

As confidence returns the market will free up, those already with properties will see their sales values rise, along with the prices of new housing. First time buyers will, as ever, be the casualties, IVA's or not.

[nonewdebt]

My arguement is focused on the Newbuy scheme and not on the general schemata of lending criterias for all.As the forum is around IVA.

The one example mentioned concerning the success with the Halifax on newbuy as mentioned had not been fully substantiated.It is just one example which I cannot use to say Halifax's policy is different from the rest.We need another example and more.

Clearly, no one example can speak for all.Like to see more.

However,Lenders aren't that keen to deal with buyers(5% deposit) with a recent IVA history and that is a palpable point.No market research have been done to gauge what every lender thinks but it is generaly true that there is a problem in getting the newbuy mortgage with a recent IVA history.

My other main arguement here is that the NB scheme will not last and so delays are going to lead to greater pressures and and with higher interest coming.Another point is that it has been commented by the CML etc that NB properties may not able to keep up with demand.

In London, I heard that NB has only 20% of the application share....the place where it cost the most to buy.Further delays is going to do what? You get my sentiment.

One refusal from one lender will go on the CC file and with more of those will make the chances worse.Another predicament is,maybe 2 applications in six months is advised like a CC.So one cannot keep going and apply to every home loan lender to beat the rush.

Advisors are advising buyers to get into NB the market ASAP before the government support money runs out

The specialist lenders are needed more than ever now but if only they make the deposit smaller for new buyers.

[nomoremoney]

Mmm, I especially get the point about not been able to apply again without a bit of a wait for a home loan, after a first rejection as the result goes on the Credit file and have a negative effect.The lenders are like Gas supplier cartles, they tend to mirror in each others behaviour.

The question then is, what is the right time to apply for these 5% deposit mortgages after an IVA transpires. Waiting in uncertainty doesn't help,fuelling anxiety and doubt.

[Ryan]

Hi Guys,
There seems a lot of confusion with this, what i can say, is we have obtained 95% mortgages for people who have had a history of an IVA, as long as it no longer shows on the Insolvency register and your credit files are all clean.
I would suggest to everyone they sort their own credit files out, as IP companies are not very helpful with this.
I have recently been told, the Insolvency register now takes 3mths to be updated, not sure how true this is though. So i would suggest going to them as soon as you have your completion certificate.