getting a mortgage

[ellis9905]

can someone advise me please. We are currently in privatly rented accomodation- with another 18 months on the lease and the option to buy at the end of this period. However we are also in an Iva, currently 22 months into our 60 months.

My grandfather has recently told us that he maybe willing to help us out up to the sum of £10k- as he gave my sister the same when she bought her house, and were debating which is best way to do this.

Should he settle our iva by offering f & f -after some number crunching we believe an offer about £7000 should be accepted as still offers creditors same p in the £, leaving my grandfather holding onto £3k ( he wont pay all the money off on our Iva), then in the remaining months of our lease begin to save to top up the money held by my grandfather to scrape a deposit together.

or do we continue to pay our iva for the remaining 38 months, then in 18 months when lease expires, try to obtain a mortgage whilst currently paying the iva- using all £10k from my grandfather as a deposit?

which is easiest/best way to obtain a mortgage- smaller deposit but Iva showing as completed, or still in iva with larger deposit?

i understand that the iva continues to remain on my credit file until the origional 6 yr period has finished- but would it show any better if the iva was completed early?

with the reduction of mortgages avaliable now- is it still possible to for me to even get a mortgage?

sorry so many questions, my head is spinnng!

[MelanieGiles]

I would try and get the IVA completed as soon as you can, and then beging to improve your credit rating so that when it comes to needing a mortgage this will be 18 months behind you. In today's property climate, you will still need to find a chunky deposit, so all efforts will need to be made over the next year or so to save as much as you can towards this.

A mortgage may be possible, but is is likely that you will need to put down a deposit of around 20-30%.

[kallis3]

Things like your bank account, mobile phone contracts, will all help to build up your credit rating.

As soon as your IVA is finished (by whatever means), you need to order a copy of your credit report to check and see what it says on there. Any defaults recorded after the date of the IVA need to be removed.