It is highly unlikely to obtain a mortgage whilst in a IVA due to your credit rating being shot for 6 years & lenders will not touch someone in a IVA. After a IVA has been successful & dropped of your credit record, a mortgage may be possible, but will likely require a large deposit.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
As the others have said, you are highly unlikely to be able to get a mortgage whilst in an IVA.
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
If you are considering an iva, it is worth considering that you are unlikely to get a mortgage with your current level of debt anyway. Even with a perfect repayment history your high debts would score badly on the affordability test. An via may be the quickest route to resolving your debts and getting a mortgage in the future. x
Well I have just finished an IVA and can confirm you have no chance of getting a mortgage in an IVA and little chance for a long time after an IVA.
Once you get to the end of the IVA you start to get the statements from your creditors and on the reverse it clearly states 'after iva completed they hold a record of this internally for another 6 years!
So that's 11 years before they will even consider you on the normal banking high street - so only option then is a sub prime mortgate which will be double the high street rate.
I think those offering debt solutions need to make this clear at the start of your IVA application as depending on your circumstances going bankrupt is a better option.
I went into an IVA thinking by doing the right thing and paying back nearly all my debt now over 5 years that I would be given a fair chance to get a mortgage after I cleared my credit file up - I did not expect to get the same rates as a person with a faultless credit history but I did expect at least to be considered as a customer.
But the sad reality is for most you are classed as damaged goods by the high street banks and a non customer.
If I had realised this at the start of my IVA enquiry I would have gone bankrupt meaning I only paid for 3 years max or even less - I could then have put my money into a saving account towards a B plan regarding house ownership in the future.
I really think paying an IVA over 5 years and nearly fully paying off my debts have been a complete waste of time as the banks make it clear the do not see any difference between IVA and being Bankrupt apart from the latter being the worst option for them financially.
The only positive advice I can give as to obtaining a mortgage is if the debt is soley in 'your name only' and you meet someone after your IVA started make sure you keep all your finances separate from theirs and then get them to apply for the mortgage in their name only.
Yes you will not gets as big a house but due to the fact house prices will be going down in value not up for the near future at least you can get on the property ladder this way.
No need to worry about the statements its the creditors way of keeping you on your toes 'it's like hello we have not forgotten about you debt you better keep those payments up'
As for the 11 years on file - yes i'm afraid this is very true as much as they try to cover it up - but this is for getting a mortgage via a high street bank.
You have an option to get a sub prime mortgage but these are very expensive and should only be taken short term until in future years the high street bank may offer you better rates.
But sub prime mortgages are the main reason the world his this recession - basicly greedy banks lending too much to too higher risk customer with nearly 100 percent mortgages given and they wonder why things went the way they did.
Sub prime mortgages will come back as lets face it the banks dont make money out of customer who can afford mortgages they make money out of those of us with a bad credit history so they can charge you a lot more and make bigger profits.
They only thing that will change is the amount of deposit you need to put down before you get a mortgage in the future.
OK -- this 11 years thing is not as black and white as painted. IVA stays on your credit file for 6 years from acceptance of the IVA. Your individual creditors will also keep your file alive with them for 6 years from the time the relationship terminated ( the end of the IVA, technically).
So, if that creditor is Barclays, you are basically "shut off" from them, and members of their Group, for the 12 years.
You could still, however, approach, say, the Yorkshire Building Society, after the 6 years from acceptance of the IVA. They will do a search and you will come up clean. If they weren't one of your creditors, their internal files will also come up clean.
BUT ... there's always a "but" ...... they will probably ask on the applkication form if you have ever been bankrupt. You can rely NO -- still clean. If they ask if you have ever made an arrangement for payment with your creditors, you should reply YES .... bummmmmeeer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
So your telling me that the banks do not share this information with each other? You can hope the do not but I know they do I have friends who work in the bank.
The banks do not want to advertise this as lets face it most would choose to go bankrupt then and the banks get nothing so it's not in there interest to promote this.
Yes you may get lucky but if you check the high street banks and their group of companies you will find out that 9 out of 10 times your debts are connected to the group in some way.
There are actually very few stand alone banks out there anymore.
The thing with debt is you have to accept you will be tarnished for a long time with the bad customer label - the minute you accept this is the moment you free yourself of worry regarding your debts and start moving forward.
Hay its not all bad having no mortgage after all you could spend 25 years paying it off and then when your old and grey the government make you sell it and give them all your money to pay for you old age care - this happened to my grandparents on both sides of the family depressing hay.
Live your life and make sure when you pay off your IVA that you book a big holiday the follwing year! thats what I'm going to do!
I would be interested in a IPs view on this as this is not my strong point of IVAs.
Even in the current state of the eccomony anyone trying to get a mortgage as a first time buyer is finding it difficult.
I know that needing a large deposit will hinder our own chances, but we were knocked out of the housing market years ago when the prices just kept on rising n rising.
Ifi don't win the lottery or a mystery relative leaves us anything, we feel as though we have no chance anyway.
Enjoy the holiday maya xxxx
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
