in IVA , would it be possible to pay off debt

[Patrick]

Although already in the first year of an IVA, would it be possible to get a larger mortgage, pay off the debt indicated in the agreement, and start to better my credit score that will allow me to move house/get a better morgage deal in the future?



Pat

[Storm]

If you are already in the IVA any mortgage package would be based on this....

Lenders prefer you to have been in an IVA for at least 12 months - the maximum loan to value would be 80-85% - the interest rate will be slightly higher to reflect the increased risk.

It is worth noting that mortgages are not credit scored but criteria driven.

[Adrian Ratcliffe]

Hi Patrick,
Better to pay the IVA off earlier than later the IP is looking to get 100% of the original debt back anyway.
A number of companies will remotgage you after 6 months IF you have paid the last 6 months IVA payments ontime and havn't missed more than 3 mortgage payments over the last 12 months.
It will take 6 years for your credit file to look any different and you will have to apply to eqifax,callcredit and experian to make sure your details are correct.
Email me for list of mortgage providers (I have used them and I am too in an IVA)
Regards
Adrian

[MelanieGiles]

Hi Patrick

I am rather curious about your suggestion, so soon into a voluntary arrangement where I imagine your property was valued and an equity calculation worked out. How was the property treated within the IVA? I feel that your creditors will think it a little odd that you are applying for a variation to the IVA terms so soon after acceptance, but you will need to speak to your own IP in this regard to take more specialist advice.

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

[Patrick]

Will do, but what sort of interest rate can I expect?

Hi Patrick,
Better to pay the IVA off earlier than later the IP is looking to get 100% of the original debt back anyway.
A number of companies will remotgage you after 6 months IF you have paid the last 6 months IVA payments ontime and havn't missed more than 3 mortgage payments over the last 12 months.
It will take 6 years for your credit file to look any different and you will have to apply to eqifax,callcredit and experian to make sure your details are correct.
Email me for list of mortgage providers (I have used them and I am too in an IVA)
Regards
Adrian

Pat

[Patrick]

Melanie,

Many thanks for your response. I am keen to put this behind me, as my wife and I are both in an IVA. It could affect our promotion/employment prospects, so am curious as to the possibility of getting a remortgage to pay the total, in the next year or so ( hoping equity will be greater) and start the mending process. Is this possible, and what sort of interest rate could I expect after a year in an IVA?

Hi Patrick

I am rather curious about your suggestion, so soon into a voluntary arrangement where I imagine your property was valued and an equity calculation worked out. How was the property treated within the IVA? I feel that your creditors will think it a little odd that you are applying for a variation to the IVA terms so soon after acceptance, but you will need to speak to your own IP in this regard to take more specialist advice.

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

Pat

[Patrick]

After a year in an IVA, do you know what sort of interest I can expect?

If you are already in the IVA any mortgage package would be based on this....

Lenders prefer you to have been in an IVA for at least 12 months - the maximum loan to value would be 80-85% - the interest rate will be slightly higher to reflect the increased risk.

It is worth noting that mortgages are not credit scored but criteria driven.

Pat

[Skippy]

Hi Pat, you would be better off speaking to a mortgage broker who deals with sub prime lending. My partner (who is self employed and therefore needs a self cert mortgage) has been in contact with Welshboy (aka Tony Parsons) from this forum. His email address is antony.parsons@btopenworld.com.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

But isn't the equity release already included in the IVA during the final year?

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