Paying off an IVA early?

[gazlee82]

Hey Guys, just after some advice.

I have currently been in debt since 2002 but just over a year ago I was sick of my debt management plan as it never seemed to pay my debt off, so my company advised me to do an IVA. With me having much knowledge I decided to take up on this to clear my debts in 5yrs, not realising its the next thing to being bankrupt. Anyway just over a year on me and my partner want to buy an house to setup a family but I am unable to get a mortgage even despite the fact I earn £48,000 a year. We don't have a deposit and I still owe about £10,000 on my IVA. We have discussed my partner taking a loan out (as she as good credit) for say £16,000 paying off my debt and having a deposit for an house, but my concern is that I would still have a bad credit rating for another 5 years. What do you guys think? Is it not worth doing it this way or can anyone offer any advice how we can get a mortgage?

Thanks

[facingittogether]

hi and welcome!

i am not an expert but think even if your partner took a loan out and paid your iva off your credit rating would still be terrible for 5 years - i may be wrong but thats how i understand it!

as far as i am aware it is possible to obtain a mortgage whilst in an iva but i think the interest would be higher, not to sure how easy it would be to obtain one in this current market though!

to me it seems pointless your partner taking a loan with interest and paying more back when it will not improve your crdit rating!
would you not consider renting?

an expert i am sure will be along shortly

good luck whatever you decide

barb x

[MelanieGiles]

The IVA will remain on your record for 6 years from the date of your creditors meeting, but this does not mean that you will not be considered for a mortgage - just that you will probably have to pay a higher interest rate. This is one of the downsides of having borrowed money you are unable to pay back I am afraid, but it will rectify itself in time.