any way i could buy this property

[john.m]

I am coming to the end of my firt year in an IVA, and live in a house which my parents own and have an outstanding mortage for £53000 which i cover the costs of the mortgage payments and life assurance for them as it is me who is living there a bit like renting i suppose. However is there any way i could buy this property from my parents and use the equity to pay off an IVA, my parents have agreed to sell me the house for what the outstanding mortgage is. ibut having an IVA im sure im am going to have difficulties in getting a mortage. the house is now worth approx £110000 and i was considering a one account or some think similar.

[MelanieGiles]

Hi john

Unless you parents could help you to fund a 10-15% deposit, it is unlikely that you will be able to get a mortgage whilst in an IVA. If they could afford to lend you the money, you would then need to ensure that the new mortgage payments were no more than the rent you are currently paying.

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

[Adam Davies]

Hi
The house is worth 110k and they are going to sell it to you for 53k.
I can,t see a problem with that Melanie,surely the creditors would be happy to have the IVA paid off early and surely a mortgage company will loan at least 80% of the value ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

You do make a good point there Andy, so it might be worth running by a mortgage broker to see what could be available for you.

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

[mikebdomain]

From a mortgage brokers perspective

You are setting your hopes a little high on a one account - you need to be fairly clean to obtain one.

Find a mortgage broker with expertise in the adverse lending market and complete a fact find, they will then be able to offer you full advice on the mortgage products you can have access too.

With a vendors gift of that size you could obtain a mortgage product with no deposit, potentialy there is a method to raise extra capital and post completion you could release equity which would allow you to pay off the IVA, if you so wish.

As stated so many times previously, you will need your IPs permission to obtain the mortgage - best advice; talk to a broker then approach your IP with a proposal.

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