obtaining a mortgage and move into my own place.

[richard_b]

I currently have debts of £25,000 or there abouts and living at home. I would like to look at ways to reduce my monthly outgoings from 1k a month to a resonable amount so that my fiance and I can look at obtaining a mortgage and move into my own place.

Is this possible if I take the option of an IVA or does this prevent me from applying for a mortgage..

[steve532]

An IVA is only available if your insolvent. Not just because you fancy a house with your fiance. Sorry if this sounds a bit harsh but the trend now is for people to think that IVA is an easy way out for people who have built up some debt.
If this is not the case im sorry post more details of your debt on here and im sure the experts will give you the advice you require.

steve

[MelanieGiles]

Richard

You will need to tell us how much you owe, and how much disposable income you have to offer to creditors on a monthly basis.

A mortgage will only be possible if you have a deposit to put down, and your mortgage payments are likely to be more than you are paying your parents. Also you will need to take into account all of the outgoings.

Steve is right, you cannot use an IVA as a method to just reduce your payments.

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

[jamesfalla]

Richard

Unfortunately Melanie and Steve are quite correct, you can not use an IVA unless you are truely insolvent.

If you truely are struggling with your debt repayments, then an IVA might be possible, however this would not help you with your goal of getting a house, as you would probably not be able to take a mortgage for 5 years (while your IVA lasted).

If your credit rating is good, then I understand that it is possible to borrow up to £25,000 as an unsecurred loan. Over 5 years your monthly repayments would certainly be below £1000. Have you spoken to your bank about this?



James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk