Mortgages

[Ellie May]

Hi there

I stumbled across this forum whilst googling for info on mortgages with an IVA and I have to say its great! I have been trawling through the topics and found some really interesting stuff, so I think its safe to say I will be here quite a lot from now on. Also being a 'newbie' please forgive me if my question is in the wrong section or has been asked before (I did search for it but didn't see it). Anyhow here goes.

My IVA was approved in June 2007 and so far so good. What did concern me greatly however was that I would desperately like to buy a house as rent seems to me like flushing good money down the loo. On looking at the web and this forum though I see that it is not out of the question and that there are some mortgage experts on here. Also I am lucky enough to have a £5k deposit which will be a 'gift' from my mother, which according to what I have read will be acceptable to my creditors.

So what I would like to know is who should I be approaching for a mortgage and what is the procedure (I am a first time buyer). Also are their any pitfalls to be aware of (other than claims on equity on my property at the end of the IVA which I have read about)?

Thanks in advance guys!!

[mikebdomain]

Hi Ellie and welcome to the forum,

5k by anybody’s standards is a sizable deposit, however, unfortunately as you are in an IVA a 5k deposit is 10% of 50k and only 15% of 16.6k - I am not sure what amount you are looking to borrow, but I'm sure it's probably more than that.

To obtain a mortgage whilst in an IVA you would need the permission of your IP/Creditors, have carried out your IVA satisfactorily & a 10-15% deposit. To obtain a 90% mortgage product you would need a fairly decent credit score.

That said, the procedure is to go through a fact find with a mortgage broker, who will, after carrying out a credit search, search the market for you and hopefully find a mortgage product that meets your needs, wants and circumstances. The rate you could obtain would depend on your personal circumstances and each case is taken on its own merits.

Hope this helps