First Time Buyer with IVA

[daveb]

Hi,

I have recently completed my first year in my IVA, and I am currently thinking of buying a house with my partner. I understand that the deposit will have to come from a third party (my partner & parents), but I am very worried about not getting accepted for a mortgage because of my IVA.

I also understand I would have to get permission from my IP to enter into a mortgage, but what criteria would they be looking at to make their decision? I should be able to maintain similar contributions to my IVA, if I were to have a motrgage.

Also which companies are more likely to offer IVA friendly mortages?
Is there anything else I should consider?

I will be grateful for some help with these queries.

Thanks

Dave B

[mikebdomain]

Hi daveb you seem to have done the basic research, when you are ready to look for a mortgage give any of the brokers that post on this forum a shout. Any one of us will be only too happy to search for an available mortgage product for you.

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[Adam Davies]

Hi
Have a chat with your IP and keep them informed.
You have ticked all the right boxes [IVA upto date,deposit from third party,can maintain IVA payments].
Good luck to you and I don't think that you will have any problems in finding a selection of companies willing to give you a mortgage.I think that the higher your deposit the wider this selection will get,unless Mike corrects me
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[mikebdomain]

No - you've got it about right there Andy

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Whole of Market Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Directly Authorised Firm FSA No:313790

CeMAP 1,2 & 3 qualified
F.P.C 1,2 & 3 qualified
Financial Planning Certificate
Certificate in Regulated Customer Care
Certificate in Regulated General Insurance
Associate of the Charted Insurance Institute

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[daveb]

Thank for the quik replies.

We are hoping to put down a deposit of about 5%. Would this be sufficient, to give us a good selection. I am guessing that the interest rate on the mortgage would be much higher, because of my IVA?

Thanks

Dave B

[mikebdomain]

Dave, You will have a job finding a 95% product with a current IVA. You really need to be looking at 10 to 25% deposit.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Whole of Market Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Directly Authorised Firm FSA No:313790

CeMAP 1,2 & 3 qualified
F.P.C 1,2 & 3 qualified
Financial Planning Certificate
Certificate in Regulated Customer Care
Certificate in Regulated General Insurance
Associate of the Charted Insurance Institute

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[daveb]

Mike,

I doubt it would be possible to raise a 10% deposit. I would then be looking at about £15k. as my partner is on a lower income than myself.

Would it be wiser to use the third party funds available, to end my IVA early? I could then apply for a mortgage afterwards. I have thought of this approach before, but I assumed my credit rating would still be affected, and may still struggle to find a mortgage product to suit me.

[debbiw]

An IVA with stay on your credit file for six years from the date of the acceptance.

[mikebdomain]

You will not be able to get a 100% mortgage for quite some time i.e. (based on most of the products available today) 5 years. Some lenders will offer 95% after the IVA has been satisfied for twelve months, but after spending your third party funds paying off your IVA, will you be able to save that amount + fees in twelve months?

I couldn’t offer any advice on the benefits of paying off your IVA early, one of the forum IPs (or your own) will be better able to do that…

The mortgage products are just are not available at the moment (due to the credit crunch). No one really knows in what direction the market will be going over the coming months, but with only a 5% deposit, I would suggest you hang on in there for a while and see what happens….


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Whole of Market Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Directly Authorised Firm FSA No:313790

CeMAP 1,2 & 3 qualified
F.P.C 1,2 & 3 qualified
Financial Planning Certificate
Certificate in Regulated Customer Care
Certificate in Regulated General Insurance
Associate of the Charted Insurance Institute

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[daveb]

We would be able to get together another 5% in twelve months. However I would have to wait until 2 years into my IVA to be able to make a reasonable offer. That would bring me to next October. Twelve months after that, is pretty much 2 years time, unfortunately we really need to be out of my parents house by summer next year, due to current circumstances.

I guess I will have to rethink my options. Thankyou for all your help so far.

Dave B