Hi, I finished my IVA in September (Completed 2 and a half years early). My credit file now says satisfied and I have no other debts. I am now interested in buying a house and have seen one for £60,000 that would be suitable.
I have searched the internet and all I seem to find is specialist mortgage companies that seem to suggest it will be very hard for me to get a mortgage. I am reasonably well paid £37,000 a year and would be able to get a £12,000 deposit from savings/family (which, if my maths is correct is 20%). At the minute I pay rent which is £750 a month so obviousley I could easily afford the mortgage. I'm very careful now with outgoings and as I say I have no debts so after rent/bills etc... usually have about £1,000 left over.
How do people think I would fare if I approached a bank or mortgage advisor? I know that the IVA wrecks your credit history but surely it should be OK if I'm well within what I can afford?
You have helped me on this forum before and I've found all your advice to be really helpful so I thought I would approach the experts first! [:D]
I'd be really grafeful for any advice! Thanks in advance...
Your IVA will show on your record until the full six years from acceptance regardless of the fact that you finished early.
You will find it very hard to get a mortgage without a huge deposit - more than 20%. Even those with a perfect credit rating are finding it hard.
You should try a whole of market provider - if you can get one you might find the interest rates higher than normal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thats really not good news. How much of a deposit do you think I would need to buy a property for £60,000. I presumed that a mortgage of £48,000 (60 minus the 20% deposit) would not have been much of a risk. That said I know nothing about this sort of thing so it was probably wishful thinking from my point of view. I suppose another option would be to ask my parents to put it in their name although is there an age limit for mortgages? They are 58 and 54. Would much rather do it myself though and not sure they would agree anyway.
Regarding the interst rates I'm not too bothered if its high because I'd hopefully be able to re-mortgage in 3 years when the IVA comes off my record. I had worked out that with a 5% interest rate over 25 years the repayments would be £280 or at 10% it would be £440. Both are far better than the rent I pay now. What sort of interest rate do you think they would offer if by any extreme chance they offered me something?
I honestly don't know how much you would need - one of our posters has just got a mortgage with a 50% deposit.
I've also no idea what the interest rate would be. If you speak to a whole of mortgage broker they may be able to help.
Unfortunately, as it's the bank holiday weekend I can't see many of our experts being around - hopefully one of them can pick up on this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Unfortunately our ivas set off alarm bells that send lenders' common sense out the window. One poster though has got a mortgage with the iva on her file...but she did have a 50% deposit as Jan said. A whole of Market broker will be best placed to help xx
Today we have been devastated by news that unless we can provide a 50K deposit we are unlikely to get a mortgage for another 6 years!
We have spent 6 years scrimping and handing over all our cash to pay off our debts because we were led to believe that after 6 years our credit records would be clear and we would have paid our debts. It now appears that people with bankruptcy are more likely to get a mortage than us! Had we taken that route we would have been free years ago. One mortgage provider I saw gives better terms to the bankrupt rather than an IVA!!!! Incredible. If I'd known then what I know now I wouldnt have taken an IVA, you just continue to be labelled and treated like a leper.
If anyone does have anything positive to share I really would appreciate it as we feel very let down and like we are having our dreams trampled upon.
You would have been no better off with bankruptcy as it would be on your record for the same length of time.
Once your IVA drops off the record and you've tidied up your credit record then you should be able to build up your credit record once again.
Did you speak to a whole of market broker?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You could try a whole market broker...they will be able to advise who doesn't ask the insolvency question. Out of interest, did the lender exlain why they give preferential treatment to BR? it is pretty devastating - when I entered my iva IPs still believed mortgages to be possible with ivas on file but the world has changed in the past couple of years. Don't give up until you've spoken to a broker xx
If you both message me off line I will give you my brokers details. We are completing on our mortgage this week and will have the keys !! Our IvA finished in November last year, certificate received in February this year, offer placed march 24, and complete this week!
Mortgage broker used to source mortgage for ex iva customers .. little choice but via a subsidiary of a high street lender we have a 80k mortgage approved.... More than happy to share my experiences and direct you to my broker if you want to talk to him.... Let me know.
Jan... Might need your expert help here in passing the email details to me / posters as my IT skills are not still not good on this ! Thanks
Last edited by luluj on Sun Apr 24, 2011 6:23 am, edited 1 time in total.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Luluj, if pikelander comes on and says he is happy for details to be exchanged then I can send him your details.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think it's 50% Paul. She had an inheritance which is why she has been able to do this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thank you all for your support, it always helps to share in these moments of despair! I will get back to you re brokers details. The mortgage advisor we saw yesterday is going to make some calls on Tuesday and wea re also thinking of speaking to our own bank. The biggest issue is the size of the deposit, we thought we had done well getting 15-20% under our belt but there's no way we can raise another 20-30%! Will keep you updated on our progress. Thank you all!
Would you like me to pass on luluj's details pikelander?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
