having an IVA affect getting a mortgage

[emma.t]

I do not currently have a mortgage. I am considering taking out an IVA to clear my personal debt. My husband and I will possibly be looking to take out a mortgage in this year. Will having an IVA affect my chances of getting a mortgage. (I amnot the main wage earner)

[ianmillington]

Hi Emma

It probably will, if the mortgage is to be in joint names. Some lenders won't touch you at all, others will.

You are likely to get a lower Loan to Valuation than someone who is not in an IVA and to pay a higher interest rate. I.E you won't be able to borrow quite as much and it is liklely to cost a bit more.

It's always important to shop around for a mortgage, equally so if you are in an IVA.

There are a number of mortgage brokers who contribute to this forum and will no doubt be able to advise further.

Ian

[emma.t]

THanks for your advice Ian

[Welsh Boy]

emma.t

It would be possible to get a mortgage whilst in an IVA, you would need the permission of your IP.

The rate would depend on a lot of facts personal to yourself, each case being looked at on its own merits.Hope this helps.Tony

[maxdebt]

Hello Emma and welcome to the forum. We tried unsuccessfully for 3 months to get a mortgage it was a real nightmare and we thought we were going to lose everything. Welshboy (Tony) got us a mortgage in just 3 hours!

[emma.t]

That is excellent! It is just me who has the debt and so i will be taking th ivca out on my own. quick question - have you heard of 'direct debt solutions'? they are the ones i am talking to. are they an ok company?

[maxdebt]

The best advice I can give when it comes to choosing an IVA company is to take a couple of days to thoroughly research a few companies. Go to www.iva.com for impartial reviews. Good luck [:)]

[whem]

i am interested to know someone takes out a mortgage whilst in an iva sureley that would mean the creditors would lose out as surely mortgages are more expensive than renting which would not be cost effective for them to aggre on also would they then have a claim to equity in the property at a later date ?

[size5]

Direct debt solutions are apparently part of the B&E family. Personally, I wouldn't touch them with a bargepole but make your own mind up.
As IP fees are being squeezed, B&E are now taking 2 upfront payments on DMP's as a set up fee instead of the customary one, PLUS an extra £70 "admin fee" with a minimum ongoing fee of AT LEAST £35 per month, regardless of affordability.
So, therefore, a DMP client with a disposable income of £169 would pay £408 before one penny was released to his creditors.
Absolutely scandalous.

[Adam Davies]

Hi
To answer Whem's question
Part of the agreement when taking out a mortgage post IVA is that it will not affect your ability to repay your IVA and this will normally mean that the mortgage payments will be no more than your previous rent payments.
Creditors have no claim on your equity if you purchase post IVA,unless you sell up whilst still in the IVA where the equity would be classed as a windfall.
Regards

[whem]

thanks for the answer andy
definatley not an option for me then as my rent would not cover the same costs as a mortgage !!!

[emma.t]

Thanks for the advice above. did some research on direct debt solutions and def would not go near them with a bargepole!