Getting a mortgage while in an IVA

[penny.l]

Hi there. I am 1 year into an IVA with no savings and in a contract position (although it is fairly stable). My landlord has just told me that I need to be out of the house by 1st Sept. Myself and a friend rent at the moment. I am 28 and really feel like I can't face renting again. I need advice on whether I can get a mortgage, and if so how much for - I currently earn £21k. I have no savings but my Dad would probably help me with the deposit. The other option is if my Dad came into the mortgage with me as a joint partner (although wouldn't actually be paying into it). Are there specific companies that deal with this sort of thing or am I dreaming? [?][:(]

[Oliver]

If you're Father is willing to stump up a deposit (I think you'll somewhere between 10-15% of the property value) then you could possibly take out a mortgage. You will need the express permision of your IP and it is unlikely that this will be agreed if the mortgage puts you in a worse financial position than renting (i.e. would cost you more). You will need to seek the advice of a specialist lender and the amount you can borrow will be based upon the affordability. Usually though a single person can borrow between 4-5 times their annual salary.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[aguise]

Hi Penny
You can have a mortgage in an iva but your payments would need to be no more than the rent you pay at the moment and the deposit would have to come maybe from dad. You would have to go to what is called a sub prime lender. Welshboy who posts on this site might be the best person to talk to, he will give good honest advice.
Maybe admin could put his email on.

Hope that helps a little.
Ang

[Louise]

Apart from speaking to Welshboy how can you find out about other 'sub prime lenders'? I would value welshboy's opinion when the time is right, it's just my partner and I were trying to do an internet search and it bought all the wrong things up!

Also, if you are renting but the landlord hasn't increased the rent for a good couple of years because the property is in slight disrepair to which it would cost far more money to fix the problems then increase our rent, (we pay £475 per month when other smaller houses on street are £575-£650) then would it be acceptable if you were given a deposit from a relative to get a mortgage and have mortgage repayments of say £600.00 per month?
Thanks, Louise

[Adam Davies]

Hi Louise
If you can maintain your IVA payments then your IP may allow a move but if you are looking to reduce your IVA payments,due to higher housing costs,then this would need a variation meeting and would be unlikely to be accepted by your creditors.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[Oliver]

You can search the interenet for local Mortgage brokers and you will find other sub prime lenders.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Louise]

Thanks for your responses. Can I ask another question relating to this. In our IVA agreement there was no mention about equity release etc because we are not home owners. If we were to get a mortgage (with a deposit from a relative) could the creditors make the contract change so that you do have to release equity? I shouldn't imagine u would build up any equity in say the first 2 yrs but just wanted to know where you would stand with it.
Thanks, Louise

[Adam Davies]

Hi
No,they can,t just add this clause unless you ask for a variation meeting and it,s put in at that point,but you would have to agree to it.
For info I purchased a house in my first year of my IVA and the equity that built up enabled me to offer a full and final settlement after three years.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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