Hi,
I have a question about mortgages and IVA!
I started an IVA 4 years ago, this time last year I paid it off with a full & final offer. I understand it will be on my record for 6 years (so 2 to go!)
My partner and I were looking at some houses for a mortgage, we have about 15% deposit so 85% mortgage. Anyway 2 months ago I phoned a mortgage advisor and explained my situation printed off my Experian report and set it to them. They done a credit check on me and phoned back with great news that we could get a mortgage as although I’d been in an IVA they were showing as satisfied. How happy was I!!!
We went back to the houses being developed and started making plans excited about no longer renting, last weekend I phoned the mortgage advisor again just to ask a couple of questions about fees, etc….I didn’t get that far. I was told because of my IVA we would need at least 25% deposit or wait until 2012 when my IVA drops of my record, jaw dropping moment! He then went on and suggested doing a credit check on me (hang on you’ve done that already!!!)
So basically I think I was giving the wrong info to start with, but I still feel sick now after being on such a high to getting knocked right back down again!
So I just wanted to check to see if this is the case or if anyone knows a mortgage company that they have had luck with whilst an IVA is still on your record.
It sounds like you have a good deal there to me. A poster recently was talking in the region of 40% deposit and it is a very difficult time for mortgages, even for people with a good credit history.
It wouldn't hurt to speak to a couple of mortgage brokers though as they will undoubtedly know the market best. The company you had your IVA with may also be able to advise...I believe some have a mortgage brokerage service for clients looking to remortgage to release equity.
I hassle our group's mortgage broker quite regularly with this question, and he assures me that as soon as he finds a company that will reliably do this he'll let me know. No luck yet...
I think it is highly unlikely that you can get any sort of mortgage deal until an IVA drops off your record, and then only with a very large deposit.
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
Your broker should have known that mortgage funding would not be available at this juncture. It is very sad, as having been in an IVA for so long I personally would see you as a very good credit risk if I had millions of pounds to lend - which sadly I do not.
I am a mortgage broker and also in an IVA. Currently there is only one lender who may consider an application from you with your credit history - Cheshire Mortgage Company. However, their rates are huge starting at 13.75%. Your broker should never had run a credit check knowing that with your history there was no chance of you getting a mortgage. I suggest you make a complaint to the company.
