Hi,
I've completed my IVA started at the court date 28/07/2005 and satisfied 06/10/2010. This was actually over 5 years due to time to finalise paperwork after my final payments were cleared.
My question is about my credit rating as I want to apply for a mortgage this year and have been saving for my deposit.
Does the IVA and all detail of my old creditors be cleared after 6 years from the court date or 1 year after the satisfied date?
Also is it down to each creditor to sort this out at the 6 yr point as they were quite slow updating my credit file to say it was satisfied, almost another 3-4 months after Oct 2010 !
Once the items are cleared off my credit file will my rating go back up automatically or do I then need 6 months to rebuild my rating meaning its more like June 2012 before I can realistically get a mortgage?
Just do a final check on your credit record to make sure there are no defaults registered after the date of IVA acceptance. Otherwise your IVA will drop off after the six years.
You will have to start and rebuild your credit rating though, things like a mobile phone contract and keeping your bank account in order will all help and you could consider a Vanquis credit card (just pay it off every month). These will all help.
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
6 years from creditors agreeing to the iva it will drop off file. Check nobody defaulted you after the date the iva was appoved and use a whole of market broker to have the best chance. What % of a deposit do you have?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi Andrew - you credit report will clear completely after a total of six years -(but you need to check that all the defaults are dated to when the IVA started) it is only then you can start to build your credit score - it takes time /patience and a few choice products.
Even with a clear credit report you may have to go through a broker /have a large deposit. The question may occur on the mortgage application "have you in the last 6 years have had a debt arrangement /iva/ or bankruptcy"
Last edited by ginger3232 on Tue May 03, 2011 1:00 pm, edited 1 time in total.
Hi,
thanks for the replies. Checking my credit file with Equifax the dates on all my creditors don't really match. A lot state the court date for the default and the satisfied date of October when the paperwork went through however a few have a default date much later i.e. (10/2005 sat 01/2007) or (10/2006 sat 10/2007) and even stranger 07/2005 sat 01/2011.
Does this mean that the timing based credit clear (6 years) is really down to how good the companies are at paperwork and how quick they are at turn around?
My main reason in wanting a house this year is my wife is having our first child in Oct this year and we wanted to be in a house before the end of the year.
Regarding deposit we'd have about 10%. I had spoken to a broker within the last year and they said I'd need 25% in an IVA which is too much so I hoped once it was finished i'd be ok to get a proper mortgage. I'm in a very good job earning well now.
YOu need to identify these creditors and write to them and request them to change the default date - enclose a copy of you completion certificate.
Unfortunately - you credit file - also should indicate a good level of credit agreements managed well. Unfortunately this will come with time/patience /a few good choice product and a well managed bank account. You may find the lending criteria has changed - so shop around with diffrent brokers etc
Defaults should be on or before the date of IVA acceptance so if there are any after that you should write to the creditors and tell them to remove those defaults.
I'm afraid you're still unlikely to be able to get a mortgage with only a 10% deposit at the moment even though you have completed your IVA.
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
