how badly do iva's effect your credit rating

[roy.s]

how badly do iva's effect your credit rating i.e. if i wanted to move home 2 years into the plan would i be able to sell and get a new mortgage?

[Storm]

Mortgage lending is based on criteria rather than a 'credit score'

Whilst in an IVA you will be looking at a sub-prime lender. The loan to value will be between 85%-90% which means you will need to find a deposit of between 10-15% - you should expect to pay a slightly higher rate of interest but you will have access to fixed rate deals etc...

You will of course need your IP's permission and any lender will ask for confirmation of this in writing. You should also be aware that any equity release clauses in your IVA will be transfered to the new property and should return to your creditors the amount originally proposed.

[roy.s]

so would the higher interest i incurr also take effect if i go for a joint mortgage with my partner who has a fantastic credit rating

[Storm]

Unfortuanately yes .....

[roy.s]

thanks for your help storm.
its just that i know i need to do something quick about my finances but am s*%t scared to actually take the plunge, i'm not behind on any payments yet but know by the end of august i will have missed at least two of my commitments!!!!!

[Storm]

You will be suprised - the packages available even with a couple of missed payments and even with an IVA arn't that much more than the high street backs.

But the more adverse you have the lower the loan to value so the higher deposit you require.

[roy.s]

many thanks