I am looking at taking out an IVA, however I just wondered what my chances are of applying for a mortgage after doing so? How long after the IVA would I have to wait before looking at a mortgage and also in any circumstances is it possible to take out a mortgage whilst in an IVA?
Hey jaimi84, welcome to the forum. Your IVA will drop off your file 6 years from the date of your creditors meeting. After that you would need to build your credit rating up but there are companies out there who will try for a deal for you. As for if you can in an IVA, maybe, but probably not unfortunately. X
A mortgage may be possible to find during an iva but you would need a good sized deposit and your mortgage payments would have to be comparable to any rent you currently pay.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
It's very difficult to predict what your chances of getting a mortgage after an IVA will be.
The primary reason for this is that nobody could confidently predict if, how, and when an accessible market for mortgages for people with impaired credit histories will return.
It's true to say that an IVA will drop off your credit file six years after entering into it but mortgage lenders will likely still ask whether you have ever been in an IVA as part of their application form.
Those lenders still in the credit impaired market currently make a distinction based on how long the IVA has been succesfully completed for. The longer the better.
In the current environment a mortgage during an IVA would require at least a 20% deposit, cash for associated costs, and a very chunky interest rate.
In simple terms the mortgage market is wrecked at the moment.
When the time comes for you to buy a property I'd suggest you speak to a mortgage broker a good few months in advance of your intended purchase to ensure it is viable and affordable for you.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
I read that 1 in 4 new first time mortgages are rejected.....!! The problem now is basically a chronic reduction in choice in Home loan lending, and with the 7 demultualised society no longer playing their pipes the decision to lend is now concentrated in a small hand.
With BB, at least they had some esoteric risky lending that included subprime lending. With less mortgages out there and rates based on your credit history and the need of a deposit - my take would be that the future does not bode well for subprime or risk lending....the Banks aren't going for the market wholesale funding like they used to.They got their fingers burnt.... There is just isn't enough mortgages to go round?
You better off going for a council house.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
