Hi my question is if I have an active mortgage and two secured loans which are not part of the iva I have, my credit rating should continue to grow so would it be possible to get a new mortgage and sell my house while still on the iva plan as I'm already paying one and they can see it's still been paid along with the 2 secures loans would they still decline because there's an iva in place
The IVA will destroy your credit rating and, if you did sell, all equity would be paid into your IVA, so you would have no deposit or money for legal fees etc. So it would be a no-go.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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.
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If you already have a mortgage and secured loans there will be restrictions on selling anyway. And as others say very unlikely you will be accepted for new lines of credit with the iva on your record.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
What you could consider is raising funds through a remortgage or second charge in order to raise funds to make an offer of 'full and final' settlement to your creditors. If successful you would then be able to sell the property and keep any remaining equity. If you are hoping to take a new mortgage to buy a new house after that then your options may be limited but it's not impossible, depending on your other circumstances.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Can you obtain a mortgage once your IVA is completed and is off your files? When I brought this house 11 years I was single and a new 2 bedroom place was perfect. I now have a husband and a 2 year old where the house just is not big enough and we're looking to upsize to a three bedroom house. The issue we have is the house prices in our area are out of reach and we have been looking at Shared ownership properties and options. All the affordability calculations that we have done with people have passed but it seems as soon as you mention to a broker that you have had an IVA they are all saying no you won't get a mortgage. Sorry. Surely that isn't the case as hundreds of people have successfully moved on from having an IVA? Does anyone have any experience of shared ownership mortgages after an IVA and are willing to share their experiences and who they used to get there? As I'm also being told that even if they don't ask in your application about passed credit issues the solicitor will pick this information up still as they have access to back office records and will tell the creditors which will straight away then decline your application. Is this True? Thanks in advance.
Chantal -- Many brokers simply do not understand IVAs or have any contacts with sympathetic lenders. There are many lenders out there: some will lend after 6 years from the start, some six years from the end, some don't actually worry about it and a few will never lend. The trick is approaching the right lender according to the individuals circumstances.
We have two whole of market brokers on the forum who, both, have great experience with adverse credit applications and have found many members mortgages at 'High Street' rates. Have a word with Ryan and / or Shaun. Their details can be gleaned fron their profile pages here:
As Foggy says this is probably down to the fact that most mortgage brokers don’t have experience in this area of the market but is an area that we, and others specialise in. The mere fact that you had an IVA previously will not exclude you from obtaining a mortgage and, although your options may be more limited (shared ownership does narrow it down further still) and depending on your other circumstances, there is no reason it shouldn’t be possible to secure something competitive.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
