My wife entered into a IVA after getting into financial difficulties. 2 years into this arrangement I have noticed that my ability to get credit has been affected due to my wifes IVA. I now understand the reason to be due to the joint mortgage linking a financial association on my credit file. Is there anything that I can do to ressolve this to improve my credit status, or am I going to have to accept my credit status will be affected for the next 4 years.
Don't think there is anything you can do as you're financially linked to your wife. You won't be able to seperate your name from hers as you've the joint mortgage.
My wife spoke to the IVA Practioner in the week and they stated to her that it shouldn't affect my credit worthiness. All the stuff I have read points to the same fact you guys state, but the news from the the practioner gave me some hope, hence why I asked the question.
Afraid this is one area where the IP is giving duff info.
If there is any kind of joint borrowing, i.e. a mortgage or joint bank account (Not savings) then a financial association will be created at the credit reference agencies where that data is being reported.
You should be able to check that for yourself by getting hold of your free credit report at noddle.co.uk
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
Maybe a play on words here ----- It SHOULDN'T affect your credit worthiness ( but it probably will do)!! It will be up to any searching lender to decide how they will view the association and how they think it will affect the outcome of any application for credit.
Unfortunately, in this day and age of computerisation the computer has no thought processed to consider and is likely to say "No" !!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree foggy. It is all down to the lender and what the computer says, or more specifically how the computer was programmed.
Being husband and wife is not necessarily enough to be "financially associated". However having a joint "bank" account or joint mortgage will create the association.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
Slightly different situation with me, as the IVA is in my name only. Hubby has no debts in his name but we were worried when we intially started the process. Tina S (from IVA advice Co) suggested hubby could put in a 'notice of dis-asscioation' from my IVA. We have no joint accounts or mortgage though (we rent)
You cannot just put in a "notice of disassociation" to improve your credit file if there is a current joint account being reported at the CRA then there is a financial association.
You'd have to explain yourself to them why you consider there not to be an association.
If you file for a disassociation then you also have to state the relationship of the other person to you also.
If you answer husband or wife then it's further establishing an association is it not?
A bit drastic but if you were to split up then you'd be able to file a notice of disassociation I guess.
One thought that did cross my mind was to take my wifes name off the joint mortgage. I am not sure if this is possible or easy to do, does anyone have any experience of this to advise.
You could try. It depends on whether you can afford the mortgage on your own...that's what the bank will want to know as they won't include your wife's income in their calculations. It seems very drastic...why do you need credit so badly?
