If we offer a f@f will we be able to start repairing our credit and be considered for a mortgage ?

[Cat22]

Hi

We are with Stepchange in an iva. We are 2 years 5 months into our payments. Our iva was agreed over 60months with the equity clause applied.
We know the equity will not be there in year 5. We will have more than 85% LTV at that point. We are in a very difficult position currently we have to move house. We cannot wait until 2017 (year 6). We live in an area in a decline, it's making me unwell with the stress and constant worry. We've even removed our child from the local primary school to a school in a better area. We've explained all this to Stepchange. We don't feel like we 're getting much support from them at this difficult time. It's a constant worry knowing that we have to seek permission to move home knowing it could be declined. We pay £165 pm into our iva and a family member has offered us £3k to see if a f&f would be accepted. We have recently been informed that even though under statute law the iva will be removed from our credit file after 6 years some creditors may keep records longer than this. Some may never lend to us again. We're upset and angry we weren't told this at the start of our iva. Stepchange are telling us they don't have to inform clients of this. I appreciate at the time an iva is taken you want to deal with current debt problems, but how an iva will impact you long term is surely a huge deal. What we want to know is if we offer f&f will we be able to start repairing our credit file now rather than 2016/2017? We know defaults and the iva will remain for 6 years but would it benefit us to pay the debt earlier? Would we be considered for a mortgage sooner if we did a f&f? We're trying to weigh up all our options. If a f&f was accepted what happens to the restriction on our property ? What happens if we come into any more money?

[David Mond]

I will get the Insolvency Practitioner at StepChange to contact you and to explain everything to you.

Let me know in a few days if you have not heard anything.

Regards

David

[Peer Lawther]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Cat22

Hi

We are with Stepchange in an iva. We are 2 years 5 months into our payments. Our iva was agreed over 60months with the equity clause applied.
We know the equity will not be there in year 5. We will have more than 85% LTV at that point. We are in a very difficult position currently we have to move house. We cannot wait until 2017 (year 6). We live in an area in a decline, it's making me unwell with the stress and constant worry. We've even removed our child from the local primary school to a school in a better area. We've explained all this to Stepchange. We don't feel like we 're getting much support from them at this difficult time. It's a constant worry knowing that we have to seek permission to move home knowing it could be declined. We pay £165 pm into our iva and a family member has offered us £3k to see if a f&f would be accepted. We have recently been informed that even though under statute law the iva will be removed from our credit file after 6 years some creditors may keep records longer than this. Some may never lend to us again. We're upset and angry we weren't told this at the start of our iva. Stepchange are telling us they don't have to inform clients of this. I appreciate at the time an iva is taken you want to deal with current debt problems, but how an iva will impact you long term is surely a huge deal. What we want to know is if we offer f&f will we be able to start repairing our credit file now rather than 2016/2017? We know defaults and the iva will remain for 6 years but would it benefit us to pay the debt earlier? Would we be considered for a mortgage sooner if we did a f&f? We're trying to weigh up all our options. If a f&f was accepted what happens to the restriction on our property ? What happens if we come into any more money?

Hi Cat22 and thanks for your post.

Sorry to hear about your situation and we’ll try and do all we can to help.

I’d recommend that you get in touch by phone so that we can help look at your options.

In regards to your credit rating, the IVA will show on your file for 6 years from the day it was approved. After this your credit file will start to repair. However, while most creditors don’t keep paperwork beyond six years it is possible that some of your creditors included in the IVA could keep internal records regards clients who have previously broken agreements with them.

Each creditor has their own lending criteria and your credit report is just one factor they use, when applying for mortgages other factors such as the size of deposit available are also key considerations.

Regarding the restriction on your property, this will be removed once the IVA has completed.

If come into more money, or have additional funds you’d need to let your supervisor know and they will let you know if it forms part of the IVA.

If you give us a call we can look at a the possibility of a full and final offer and also discuss any other options available to you.

I hope this helps.

Kind regards,

Peer Lawther - StepChange Debt Charity

[North East Derbyshire CAB]

Hi there Peer

Nice to hear from you again

Will you be posting on here regular? as we may have a few points to raise and discuss with you, we keep coming across a number of interesting enquiries.

It would be great to have someone on regular on here from Stepchange who could address the issues etc:)

PS - congratulations on the awards

Best Regards

NED-CAB

[Cat22]

I have emailed this morning to the supervisory dept Peer. I am under a lot of stress at the moment and find it easier to communicate that way .
What we really want to know is if we can offer a f&f through gifted monies and it's accepted can we put our home on the market? Or are you saying even if a f&f is accepted the restriction will not be lifted until the original finish date of the IVA.? We have to move home. We simply can't remain in this area until 2017. I've actually missed time off work due to my illness recently. I'm on a zero hour contract so I don't get paid if I'm sick. If my health deteriorates to a point where I can't work then we'll be forced into bankruptcy and the creditors will get nothing.
We are desperately trying everything we can to resolve this to the satisfaction of our creditors and yourselves .

[Peer Lawther]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Cat22

I have emailed this morning to the supervisory dept Peer. I am under a lot of stress at the moment and find it easier to communicate that way .
What we really want to know is if we can offer a f&f through gifted monies and it's accepted can we put our home on the market? Or are you saying even if a f&f is accepted the restriction will not be lifted until the original finish date of the IVA.? We have to move home. We simply can't remain in this area until 2017. I've actually missed time off work due to my illness recently. I'm on a zero hour contract so I don't get paid if I'm sick. If my health deteriorates to a point where I can't work then we'll be forced into bankruptcy and the creditors will get nothing.
We are desperately trying everything we can to resolve this to the satisfaction of our creditors and yourselves .

Hi Cat22 and thanks for getting back to me.

I understand that this must be a very stressful time, but we’ll try our best to help you through this.

We’ve got your email and we’ll send a more detailed response through.

If you put forward a variation to your IVA in regards a full and final settlement offer and this was approved by creditors your IVA would complete within a month after the meeting of creditors or receipt of cleared funds (whichever is the later). The property restriction would be removed at the time your completion certificate is issued.

Have a look at the email sent through from your Supervisor and reply directly to them with any questions (they have access to all your case details).

I hope this helps.

Kind regards,

Peer

[Peer Lawther]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi there Peer

Nice to hear from you again

Will you be posting on here regular? as we may have a few points to raise and discuss with you, we keep coming across a number of interesting enquiries.

It would be great to have someone on regular on here from Stepchange who could address the issues etc:)

PS - congratulations on the awards

Best Regards

NED-CAB

Hi NED-CAB and thanks for your kind words about the awards.

We only come onto the forum to answer queries from StepChange clients. However, we do have lots of partnerships with CABs and our partnership team would love to hear from you guys.

You can contact them here http://www.stepchange.org/Partnerships/Meetourteam.aspx

Nice to speak to you again.

Kind regards,

Peer

[Tina Shortland]

Nice to see you on here Peer for when Stepchange clients need some specific help or advice. Its good to know you are monitoring the forum to be able to pick up on these things for clients.

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Peer Lawther

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi there Peer

Nice to hear from you again

Will you be posting on here regular? as we may have a few points to raise and discuss with you, we keep coming across a number of interesting enquiries.

It would be great to have someone on regular on here from Stepchange who could address the issues etc:)

PS - congratulations on the awards

Best Regards

NED-CAB

Hi NED-CAB and thanks for your kind words about the awards.

We only come onto the forum to answer queries from StepChange clients. However, we do have lots of partnerships with CABs and our partnership team would love to hear from you guys.

You can contact them here http://digital.stepchange.org/Partnersh ... rteam.aspx

Nice to speak to you again.

Kind regards,

Peer

Hi

Nice to hear from you again

It is a shame that you cannot come on and talk openly about things, that would be great, so many issues to talk about.

Does the link go anywhere Peer as we seem to be having difficulty with it!

We did correspond with you some months ago, we will catch you again sometime hopefully:)

Regards

The NED-CAB Team

[Peer Lawther]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Peer Lawther

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi there Peer

Nice to hear from you again

Will you be posting on here regular? as we may have a few points to raise and discuss with you, we keep coming across a number of interesting enquiries.

It would be great to have someone on regular on here from Stepchange who could address the issues etc:)

PS - congratulations on the awards

Best Regards

NED-CAB

Hi NED-CAB and thanks for your kind words about the awards.

We only come onto the forum to answer queries from StepChange clients. However, we do have lots of partnerships with CABs and our partnership team would love to hear from you guys.

You can contact them here http://digital.stepchange.org/Partnersh ... rteam.aspx

Nice to speak to you again.

Kind regards,

Peer

Hi

Nice to hear from you again

It is a shame that you cannot come on and talk openly about things, that would be great, so many issues to talk about.

Does the link go anywhere Peer as we seem to be having difficulty with it!

We did correspond with you some months ago, we will catch you again sometime hopefully:)

Regards

The NED-CAB Team

Hi and thanks for getting back to me.

This link should work http://www.stepchange.org/Partnerships/Meetourteam.aspx

Please get in touch the team would love to hear from you.

I'm sure we'll catch up again soon.

Kind regards,

Peer

[North East Derbyshire CAB]

Hi Peer

Yes, it works now, many thanks for that.

It is funny you say that really as we also feel sure that we will catch up again soon.

It is just a matter of time really:)

Old friends never fade away, or should that be old soldiers or something:)

Regards

The NED-CAB Team

[Cat22]

Can someone please tell me what the process for a f&f coming from a third party is? Had another email today from Stepchange and it's just so vague.
We asked what information would be requested from our inlaws (who are offering the money) as we want to make sure they understand what will be asked of them. The email advised my inlaws could seek their own advice to understand the impact of the f&f on them. Surely Stepchange should be telling us this. I am not asking my inlaws to give up their time to seek advice on this. What is involved in the identity check? Will they be credit checked will it leave a footprint? Will their financial history be declared to our creditors?
All they want to do is gift the money towards a full and final. Why does it all have to be so complicated?

[Pixie8]

I am in a very similar situation to You. I'm desperate to move + send my kids to a better school. I to agree regarding the impact that an iva can have on your life and how it wasn't explained initially?? I am considering an f & f. I was of the understanding that you have to offer the no of months x the monthly amount for it to be accepted. Have you enquired about mortgages? I have been advised that I could be looking at paying between 8 & 9 per cent which is ridiculous. Good luck with pursuing a f & f.

[Cat22]

Hi Pixie8

It's a complete nightmare isn't it. I absolutely wish we'd been better informed. But hey ho apparently our future isn't on the agenda when looking at the iva initially.
We've investigated mortgages. No one out there will lend to anyone with an iva currently. Which is just so rubbish. We're offering a full and final so we can have the restriction removed from our house, sell up and move into rented accommodation. We are genuinely going to struggle getting a mortgage in the future and if we do we'll need a hefty deposit and will be stung on interest rates.
Hope you get sorted

[Michael Peoples]

Stepchange are funded by the banks. How many insolvency practitioners have they? Demand to speak to yours!

We have 4 insolvency practitioners and I think Melanie Giles has something similar yet we only do a small amount of IVAs. Any of our clients can speak to their IP so you should be able to as well especially since you pay their wages!