in an IVA with negative equity

[jodo]

I'm in an IVA and also have 20k negative equity in my property. I want to sell and buy a property with my partner who has no credit problems. Will I be able to get a mortgage even with my IVA and will we be able to borrow over the value of the property in order to pay off the negative equity as well?

[Adam Davies]

It,s extremely unlikely that you will be able to source a mortgage to cover your negative equity because of your IVA but also because it may affect your ability to repay your IVA.
Your partner could apply for a mortgage in his name only.
Be sure to speak with your IP if you do decide to move.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi jodo and a warm welcome to the forum

It will not be a great idea to leave an unsecured shortfall on this property and then enter into a mortgage with your partner for another one! The shortfall will not be able to be included in your IVA, and you will therefore have a "loose" creditor with no disposable income to be able to offer in settlement.

I also think that it is doubtful that you will be able to get a mortgage for more than the value of the property, to help clear off someone elses loan - especially as you are in an IVA.

Isn't it a better option for your partner to move into your property? And don't forget to update your IP about any change of circumstances if you start sharing household bills.

Is

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk