month 14 of a 7-year IVA

[peter36]

Hi there, I am currently into month 14 of a 7-year IVA. I currently rent a property at £455 per month. I have the opportunity to buy a house with my new partner. Are there any banks willing to give me a mortgage despite my IVA, and would my IP approve of this so long as my share of the mortgage doesn't exceed my current rent?

[chris.g]

Hiya Peter and welcome to the forum.
There are a few mortgage advisor who post on here so you should be able to get advice on where to go for a mortgage.

[MelanieGiles]

Hi Peter and welcome to the forum

If your partner has a deposit of at least 15% it might be possible for you to get a mortgage together, but as you are in an IVA this will load the interest rate. Could she afford to buy it on her own, and then have you effectively paying her rent?

So long as your new payment does not exceed what you are currently paying in rent, the Supervisor ought to have no problem in giving approval to the mortgage, but you will need to check with him/her directly first.

Can I suggest a chat with Andrew Graveson of Brightoad who regularly posts on the forum and is an expert on getting mortgages in the sub-prime marketplace.

[Emily]

It is probably the worse time to get a Homeloan as the Banks and underwriters(using US Bank loans) aren't competing in the UK subprime markets as theirs have dried up!

I think only 3 brokers left in the UK would underwrite something like this.

As prime fix rates are in the 6% plus region you could do much worse. The possibility of a further decline in House price would mean you could be facing neg Equity......

I will rent if I was you. It will take years for the market to restore itself and by the time you are out of the IVA there would be good deals would be had.

Owning a house now, unless one has been in it for long time(before 2005) isn't what it cracked up to be with the high % cost over salry of serving it.