I do agree that we should all be truthful on application forms for anything.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
We have had a poster on here previously who was told she wouldn't get a mortgage for six years from completion. It may (hopefully) be the policy of one particular lender rather than a market-wide practice.
JB - can you name the lender so othres know to steer clear?
I wouldn't sleep well knowing I hadn't been truthful on the forms but some people have the knack of getting away with this kind of stuff. I would be the one who got random-checked and had her house reposessed!
I am going to side with Mr Graveson on this thread. I have seen the damage that can be caused to people for being limited with the truth on a mortgage application, and I know of someone who is presently going to lose their home as a result of it.
Add to this the compliance issues required to be demonstrated these days by your average FSA regulated mortgage broker, and I would be suprised that anyone would risk their career for an untruthful client. If the question is asked "Have you ever ......?" - then you have to be guided to answer it honestly.
Hi
Whilst I understand that we all have to be whiter than white in this profession I do not agree with having to declare a past IVA when it is no longer on your credit file.
Someone with a criminal conviction, when it is spent, non longer has to decare it, yet someone with a successful IVA has to forever declare it and be denied main stream lending for many years ?
Wasn't self certification of income in the mortgage boom years fraud ? and far more serious ?
Crazy
Regards
For some careers, Andy, I believe even spent convictions have to be declared, if the work is sensitive. So, I guess, if the application is of a financial nature, financial history has to be declared if required.
I suppose, at the end of the day, if they don't ask it won't get mentioned. If they do ask, you have to be honest (as unfair as that might seem). The last thing you want is for it to come back and bite you.
Life is often crazy !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi
I think you will find in nearly every new mortgage application the question will be asked. If it isn't then no need to volunteer the info.
Just seems very unfair if it prevents someone from getting their life back on track after five/six hard years in an IVA. To stop someone from enjoying the benefits of high street lending will mean higher rates and charges with sub prime lenders.
I think most people who have been through the disciplines of a monthly IVA will be a very safe risk when it comes to any sort of future lending
Regards
Your last sentence is spot on, Andy. We have demonstrated our determination to address the problems, have undergone what amounts to 5 years re-training (cognative behavioural therapy, if you like)and come out at the other end, probably more financially aware that a high percentage of the population! And .. from repaying a mortgage point of view, have a proven track record of making consistant high repayments over a 5 year term.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Perhaps IVAs should be included in our credit files to show monthly payments being made on time every month! Otherwise, how would a creditor know that we have a good 5 year payment history.
Very good and sensible points made by Andy - unfortunately we don't have a very sensible financial structure for consumers in this country, and with such a lack of funds available still in the markets for lenders to lend - it is no wonder that they can find more and more barriers to put in front of people.
I believe credit files report 6 years worth of data until 6 years after the last payment is made on a credit account and the account is subsequenly closed.
That way any account that has beeen running for more than 6 years, will still show up on the report with the last 6 years of rolling history.
Different rules for defaults, IVA and BR where it is 6 years from when they are initially registered.
The fact that it shows as satisfied at the end should tell them something about how the IVA went, but I think the mear fact you have a IVA and some defaults on your account will turn most creditors away.
I know I'd think twice before borrowing again, but would one day like to have a mortgage at standard high street rates, so any banks that specifically don't ask that question I would look to first.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
Just to add my thoughts, (and slightly off track here) when i think about the future, and trying to start again after my IVA ends (Nov 2014), i will be 40, still on an average salary i expect, with a damaged credit file, and if house prices/mortgage borrowing continues the way it has been i will certainly not be able to get on the ladder again until the time im 50!
The house prices, and deposits required for a 1 bed flat in my area (Croydon, Surrey) are insane. I'd need at least a 25k plus deposit. It would take me years to save that much. Its also impossible to afford to rent on my own too...£600 being the cheapest for a studio flat, and thats without bills..
The cost of living in this part of country is a dam joke and i dont see myself getting out of this box room at my folks for many many years...quality of life after an IVA...hmmm...
All this talk about mortgages, and people not being approved,and not mentioning a post IVA just makes me think how many folks like me will find it ridiculously hard to obtain a mortgage later down the road.
After going through this IVA think id be terrified of taking on a 150k debt though..
Who knows what the future brings eh
I'm not too bothered about my credit rating as I'll be almost retired by the time I finish and hubby will be an OAP so we're never likely to want, or get, another mortgage. We shall start to do some saving hopefully.
I do agree though that we should be able to rebuild our credit and not be treated as pariahs after we have proved that we can do something constructive about sorting our debt problems out.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
One of the problems in this country is that money and a lot of financial things are looked upon more important than life itself.
Run somebody down killing them by being reckless compared to say something to do with finance like fraud,mortgage fraud etc and you see time after time cases to do with money seems to carry higher sentences.
Im not saying either one of them is exceptable but i sometimes feel a lot people in this country seem driven purley by money.
Getting on the mortgage ladder will be really hard for every first time buyer, and i dont have the answer for that.I think all these credit card companys and banks have had their fingers burnt and maybe they are starting to wake up.Not to say i still think they have played their own part in this by throwing money at people like its going out of fashion.
Myself, i know im very lucky to have a house and work really hard to keep it but being in our IVA i feel so much better not being able to get any form of credit.
Yeah there is going to be sometimes along the way when i feel i could use a bit to solve a problem like boiler repairs, or car repairs but long term think of all the money you wont be paying back to them in intrest.
