Get expert opinion. This is the place for new questions to be posted.
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Ian.wm
- Posts: 3
- Joined: Sun Apr 20, 2014 11:29 pm
Hi, I am currently in private rented accommodation costing £450.00 pm. I can get a mortgage for a lot less, the difference would go towards the IVA.
The question is, can I obtain a mortgage whilst in an IVA?
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luluj
Forum Expert
- Posts: 11333
- Joined: Sun Dec 09, 2007 6:54 am
- Location: United Kingdom
Firstly you will need the permission of your IP.
You are unlikely to be offered a mortgage while your iva is ongoing and remains on your credit file.
Even if you were offered one where would the 15-25% deposit come from ?
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Adam Davies
- Posts: 14596
- Joined: Thu Mar 29, 2007 12:21 pm
- Location:
Hi and welcome
I think at the moment the answer will be no, however once your IVA concludes you should be able to secure a mortgage. Use a broker when you are ready to move forward
Regards
Andam Davies
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Nutkins
- Posts: 132
- Joined: Thu Feb 21, 2013 5:27 pm
- Location:
Hi! It's very difficult to obtain a mortgage from a high street lender post iva so it's extremely unlikely to be offered one whilst currently in the iva! Don't forget the conveyancing fees etc which the creditors would probably want paying into the iva pot if the funds are available! When calculating your mortgage repayment, please remember that should you be offered a mortgage the interest rate is likely to be somewhat higher than advertised and therefore you may be worse off than in rented!
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sponge
- Posts: 1094
- Joined: Wed Sep 07, 2011 4:25 pm
- Location:
You maybe thinking about interest only mortgages which yes do make very cheap rent, whilst interest rates are so low, although this won't last forever. These types of mortgages in practical terms have been canned by high st lender in favor of repayment type and for good reason
It's quite a frequent ask from new posters, so you are not alone in the asking, but whilst you have that IVA on your credit record, no one's going to lend you a pencil, just one of those things that are part and parcel of an IVA
