My IVA completed in Dec 13, and everything cleared off my credit report end of Jan 14. I applied for a credit card and overdraft with Natwest and got them straight away. I wanted to build my credit rating back up. Now October and my husband and I want to apply for a mortage using help to buy as we have a 5% mortage. We appoached a new build company, and their mortgage broker has stated that i will make i past the credit score stage, but when it comes to the lenders doing their checks prior to completion, they will refuse to release funds!!! He is stating that i need to wait at least another six years. How can I get a credit card with a major high street bank, yet i can not be considered for a mortgage? The IVA is clearly the biggest mistake I ever made, and I was definitely mis-advised. Help please.
I am soon to be in the same boat as you and also feel that we were mis informed of the 'REAL' consequences of entering an IVA at the beginning of the arrangement process. 'Debt free in 5 years' we were told?....seems more like a 'life sentence' and that us ex ivaers will always be treated as 'financial lepers'. We have done our time and if we now have the financial means to take out new mortgages then we shouldn't be treated differently because of our previous mistakes due to reasons like recession, job losses etc...which all contributed to people getting up to their neck in it!!.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
Shelley. Their broker is wrong on the "6 more years front". You need to chat with a whole of market broker, experienced in difficult cases such as ex-IVA'ers, like Ryan and / or Shaun, who regularly post on here and have had great success in placing mortgages.
The low deposit might be a hinderance, but I am sure they can advise.
Christabelle, These lenders who discriminate against those who have had past problems are definitely "pots calling the kettle black". They have had their share of financial misdemeanours too, and not so long ago! If it wasn't for the taxpayers (us) bailing them out they would have gone down the pan !! And, much of our problems have come about, in one way or another, by virtue of their greed, malpractice and fraudulent activities !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I remember many years ago I walked into my bank which was then lloyds tsb and asked for an extension of £50 on my overdraft and was told that they couldnt offer me that but they could offer me a £1,000 loan over 12 months!!!!
I was astonished and refused as we already had a loan with them at that time. I explained that I did not need a £1,000 loan just an increase of £50 on my overdraft. I was told that it was not available but a £1,000 loan was.
irresponsible lending at its best I think. This is why I have no sympathy for the banks. They 'helped' us get in the messes we all got in because they exploited desperate people!!! Shame on them!
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
Government assisted house purchase schemes are not the usual broker and solicitor job.As I have made enquires myself in the past you require the builders preferred brokers and legal staff as there is a lot of behind the scenes work in the deal.
Banks wholeheartedly support the schemes mentioned and a few building societies but unlikely you will get thought them with a recent iva history.
I doubt either Ryan or Shaun can help unless they do 'Help to buy schemes' which is not just about getting any home loan.It is a special scheme.
You also need a 95 percent mortgage which is only given to the best clients with the best credit.Unless you can go beyond 5% deposit and borrow less from the government's 20% contribution of the scheme.
My enquiry to a builder took me to brokers and they sent me brochure.In it there was a faq section.It made clear if I had an iva history then they would not proceed to get me the loan.
I am keen to see what Ryan and Shaun will say on this delimma.
