Moving home in an IVA

[drowning-mummy]

I'm guessing the answer is no, but can you move home when in an IVA? We are currently in negative equity (about £2000) but as this is our first home, naturally we want to move on. So do we wait the 5 years, or can we move? Just thinking now, how do we pay for the move? Could we save up our boot fair money and a little bit of housekeeping to pay the fees etc associated with a move? No idea, not planning on moving, just something else for us to be aware of.

Karen[:o)]

[facingittogether]

hi drowning mummy!

am not sure of the answer to your question but i will be interested to know!

barb x

[Kazzy E]

Hi Kaz, really great to see you on the forum again. Thought you'd still be reading my email [:p] it was that long! I'm sure Melanie or someone will be able to answer your question, hang on in there. Kazzy x

[MelanieGiles]

Hi Karen

The answer to your question is possibly - so long as the move does not affect your IVA. You will need to be realistic about moving costs. By the time you take account of agents and legal fees, stamp duty and removal costs, you will not get much change out of £5k to £8k and that will need to be found from somewhere. It is a good idea to save up during the IVA, but personally I would get a couple of years under your belt of payments first before making these sort of plans. And in that time hopefully the housing market will have picked up, so you shoudl be out of that negative equity by that time!

[Kazzy E]

Melanie, I have found this quite interesting. Are you able to get a mortgage then if in an IVA? Obviously with the current market, many lenders for 1st time buyers are requesting a 10% deposit, which is totally our of our league, but I was just curious, thats all. (We have resigned ourselves to the fact that we will always now have to rent). Kazzy

[TheMatrix]

Our credit ratings will probably make it difficult to buy anything now unless you have a mortgage already.

I'd get the IVA out the way, save up for a year after the IVA and by then your credit rating should be sorted and then go out and buy.

That's what I'm going to do anyway.

[MelanieGiles]

Kazzy

It is entirely possible for you to buy a house whilst in an IVA - our site manager Andy Davie did that very thing with assistance from parents who funded the deposit for him. Anything is possible so long as you have a deposit - these days 15% to 20% is probably more realistic, and the mortgage payments must be in line with your rental payments so as not to disturb your IVA contributions.

[facingittogether]

thats interesting!

i didnt think you would be allowed to move because of the equity clause!

barb x

[Kazzy E]

Thanks for that Melanie, that is interesting, although hubby is adament he never wants to buy again. Food for thought for post IVA I think, certainly not during. Who knows..... Rgrds Kazzy x

[drowning-mummy]

Thank you Melanie. We always planned to move in 2010, but now it is more realistic to wait until the IVA is over. We could never save that amount anyway! House will do just fine, just need to sort out the ASBO neighbours!