could family member settle our iva early

[19thorn]

Hi me and my partner are currently in an IVA and have been for 6 months. A family member has asked whether they would be able to settle our iva early for us of our behalf. Our IVA was for £52000 at 35p in the pound. Is it possibly to settle it early and any ideas at what cost? Also I have read it is possible to get a mortgage with an IVA, but does anyone know of any good companies to try? Thanks.

[MelanieGiles]

Hi there and welcome to the forum

You will need to ask your IP for a settlement figure, but I feel that it is a shame that this offer was not made at the beginning of the IVA as creditors generally find requests for variations at such an early stage a bit tedious, and some actually stipulate that there are to be no variations over the first two years. That said - you will be able to pay them much earlier, so an offer could be attractive at this stage.

There are three good mortgage brokers who regularly contribute to this site - and I am sure could give you advice on that area.

[carlmcmullen]

Yes a third party can inject funds to do a full and final and usually creditors will accept.

As far as getting a mortgage, you will find it hard unless you have a 10 -15% deposit.

Once your IVA is completed, give it twelve months, then yes you have more of a chance. I have heard of cases who have completed there IVA and been out of it for 12 months to obtain a 100% mortgage with Yorkshire building society.

It is likely that if you are trying to get a mortgage whilst in a IVA you expenditure will increase and this will reduce your IVA payment and creditors will not accept this and it could also been seen as a breach of your arrangment as you have obtained further credit.

I would suggest you contact your IP to discuss getting a mortgage before doing it.

[Adam Davies]

Hi
You HAVE to inform your IP if you are applying for a mortgage.Your IP will have to confirm to the mortgage provider that your IVA is upto date
Regards