We are 2 and a half years into our 6 year iva. My parents are in the process of selling their house and have suggested they could give us the money to settle our iva early. We have a young family and are eager to get a mortgage so we can have our own home and stop renting. My question is, how difficult would it be to get a mortgage accepted after settlement. Would we still have to wait the 6 years before we would even be considered?
You could possibly get a mortgage after the IVA has been completed but the rates could be quite high. After six years your credit file would have improved which would reduce the rates and there would be more lenders available. Could your parents buy a property in their name for the time being and you could then buy it from them later?
Speak to a mortgage expert such as Shaun Vickery from Select who posts here or Ryan.
Whilst an IVA is on your credit record [six years from when it started] it will be near impossible to secure a new mortgage I'm afraid
Would be a good idea to end your IVA early if you can because once the six years are up the longer your IVA was concluded the more mortgage options will be available
I agree with the comments above and would suggest a quick chat with either Ryan and / or Shaun, who are both mortgage brokers with experience of adverse credit applications.
Thier contact details can be found by scrolling down to the experts details section on this page:
Hi Emma.09
If you pay the IVA off I would think you would get a mortgage immediately but only if you have a 50% deposit.
There would obviously be a lot of other factors to take in to accounts such as income/affordability etc.
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
