I recently satisfied IVA in full, clear credit file. Am I allowed to say no IVA to mortgage broker ?

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agowinuk

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Post by agowinuk » Mon Sep 29, 2014 12:39 pm
Hi Everyone,

I recently finished my IVA. I satisfied it in full and it no longer appears at all on my credit file through Equifax. My question is, is a mortgage broker allowed to ask me if I've ever had an IVA and, if they can, am I allowed to say no, now that it doesn't appear on my credit report?

Many Thanks

Andy
 
 

Foggy

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Post by Foggy » Mon Sep 29, 2014 1:19 pm
Yes, they are entitled to ask. You are legally obliged to answer honestly and must weigh up the chances of being caught in a lie, if you decide to answer no, yourself.

Consequences could range from a slap on the wrist ( and probably an interest hike ) to withdrawal of the mortgage (repossession) or even being taken to court for making a fraudulent application.

Personally I wouldn't take the chance and would use a broker well versed in the problems faced by us ex-IVA'ers, such as Ryan and / or Shaun, who regularly post on the forum.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

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Post by Michael Peoples » Mon Sep 29, 2014 2:11 pm
Some lenders will ask have you ever been in an IVA whereas others will ask have you been discharged from an IVA ithin the last 2 years for example. You must answer truthfully so as Foggy says use an experienced broker.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

agowinuk

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Post by agowinuk » Mon Sep 29, 2014 4:48 pm
Ok, thanks guys. Seems like it's pointless saying that it only stays on your credit file for 6 years in that case, almost like I've been missold an IVA as a solution - could have gone down the bankruptcy route far easier now I know this.

Is there a wider conversation to be had regarding unfair practices? We all know what the common interpretation of "it will disappear from your credit file in 6 years" is. A speeding conviction comes off your driving licence after 6 years and the insurance companies don't ask "have you been caught speeding in the last 10 years". Seems to me that there might be quite a few people who would benefit from a 'class action' style suit. Either against the lending institutions who, in my view, discriminate rather than discern,or the IVA 'pushers' who imply that, after your IVA is satisfied, everything will go back to normal.

Any takers?
 
 

Foggy

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Post by Foggy » Mon Sep 29, 2014 4:59 pm
For the sake of discussion I think you would be on a hiding to nothing with a class action based on that premise. The statement "It will disappear from your credit file in 6 years." is accurate. The law cannot allow for anyone's erroneous extrapolation of that sentence.

More likely to run would be misrepresentation by the statement "Be debt free in five years." when there is now the real possibility of homeowners getting saddled with a secured loan at the end.

However, in either case the true situation can be easily ascertained with a little research and, were I a judge, I would expect debtors to have dome some research before entering such a massive undertaking .... and, as they say ..... "ignorance is no excuse".
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Shaun Vickery

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Post by Shaun Vickery » Mon Sep 29, 2014 5:24 pm
I guess the honest truth is that anyone you ask to lend you money is entitled to ask whatever questions they like regarding your financial history. I would recommend that you are truthful in your responses to any questions but, realistically with some guidance this shouldn't prevent you from obtaining a competitive deal in any case.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.

For individual, confidential mortgage advice see my details under the IVA Experts or go to http://clients.theselectpartnership.co.uk/
 
 

Adam Davies

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Post by Adam Davies » Mon Sep 29, 2014 5:58 pm
Hi

Use a mortgage broker and be upfront with them about your IVA, they have experience on how best to deal with your situation

Good luck

Regards
Andam Davies
 
 

agowinuk

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Post by agowinuk » Mon Sep 29, 2014 6:10 pm
Ok, thanks again guys.

But surely this begs the question 'what's the point of a credit report?'

If it's there purely to help lenders decide the level of risk someone represents as a borrower, then fair enough, they should be able to ask for any information to make what they see as an informed judgement and they are fully entitled to ask me for my history going back to the age of 16.

If it is used as a marketing tool to guide me to making a specific decision regarding my own finances, I think it needs a different perspective.

I know choosing an IVA isn't a case of deciding how little you can pay off - and the fact that I have completed mine successfully implies it May have been the best for all concerned - but there was some personal choice in the decision. I chose the IVA route because it was supposedly best for me in the long run. I took an extra 4 years of pain so that I could come me out the other side stronger. Now it seems that there is no practical difference between IVA and bankruptcy. Had I known this at the time I might have chosen a different route. Is this not mis-selling or, at the very least, a misrepresentation of what benefits apply to an IVA?
 
 

agowinuk

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Post by agowinuk » Mon Sep 29, 2014 6:13 pm
BTW - please don't read anything into my post other than the wish to start a discussion.
 
 

Shaun Vickery

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Post by Shaun Vickery » Mon Sep 29, 2014 6:24 pm
Credit reference agencies have certainly locked onto the fact that they are capable of generating additional revenue from their activities. In terms of mortgage lending, ex-IVA clients are actually treated more harshly by the lending community than ex-bankrupts because of the shorter 'life' of a bankruptcy. I regularly remind lenders of the fact but with relatively little success I'm afraid to say.
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Foggy

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Post by Foggy » Mon Sep 29, 2014 6:39 pm
The CRA's use the credit score hype to sell their services to their "victims" (us). The scores are meaningless and the creditors balance up a number of things to decide whether to lend or not.

In reality those who have been rehabilitated through an IVA are probably a better bet than most !!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

TzeKin

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Post by TzeKin » Mon Sep 29, 2014 6:54 pm
The iva will have a bearing on your life as you are discovering now,some lenders will take many years if ever to deal with ex iva borrowers.That is where Ryan and others come in to assist.

It is the banks choice in their practice and relatively little point in looking at the ethics of that behaviour.Banks are not obliged to provide a bank account or to lend.

The iva was designed for small traders to get them back into business hence the 15k minimum debt requirements.It was conceived with Enterprise in mind.
Consumers overspend then 'took over it' around 2007ish and that is when the banks took a dim view and decided to not to deal with ex iva people.
(Business credit failures is always a risk and a norm....but not indulging in the goodlife with CCs)

You are on the pulse on your iva and bankruptcy comparison....many people not all, ought to have gone bankrupt and get it over with and re emerge than with a long drawn out 6/7 year iva and some won't make it through as seen here.

Banks put those owning long term money in one boat.(Defaults and making arrangements with creditors)
 
 

Foggy

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Post by Foggy » Mon Sep 29, 2014 7:37 pm
On the IVA vs. BR side: I could have gone BR but wished to pay back as much as I could. No other reason than, to some, a misplaced sense of responsibility.

I would always advise those seeking a solution to consider ALL possible avenues seriously. If the IP tries to set a ridiculous budget, or based the payment upon household income, you are heading for disaster and BR might be the sensible option.

There is not a lot in it, credit file damage wise, the only flies in the BR ointment are asset loses (mainly the house) or career blighting. If you have to make payments they will be for three years and BR cannot fail !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Shaun Vickery

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Post by Shaun Vickery » Tue Sep 30, 2014 9:14 am
Foggy I couldn't agree with you more regarding ex-IVA customers being a better bet than most! Unfortunately most lenders just don't get it.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.

For individual, confidential mortgage advice see my details under the IVA Experts or go to http://clients.theselectpartnership.co.uk/
 
 

Michael Peoples

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Post by Michael Peoples » Tue Sep 30, 2014 9:26 am
The Americans seem to have a more grown up approach to lending. They are wary of 'newbies' when they lend money but are quite happy to lend to an ex bankrupt. The thinking is that the 'newbie' has still all the mistakes to make whereas the ex bankrupt will be careful not to make the same mistakes again.I can see the logic.

There is also an issue with secured loans which has not been mentioned before but backs this point up. The number of ex IVAers who either remortgage or obtain a secured loan and then fall into arrears is negligible. It is way below that of defaults by first time buyers so the lenders need to to wake up to this and offer products accordingly.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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