It is down to you if you declare the IVA. I do not intend it to be an albatross around my neck for the rest of my life. The forms are very complex and could easily be misread or misunderstood. For example it may say "Have you ever been in an arrangement with creditors".... you MAY misread or misunderstand this to mean "Are you currently in an arrangement with creditors" in which case you can truthfully answer NO
I'm not sure that claiming to have misread a question would hold much water in these circumstances, but I think we've debated this one before! Also I can't see any particular benefit in providing false information when there's no real benefit in doing so.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
If there is any consolation,BBC news report national debt is now more than when Cameron got in.So you aren't alone in contributing towards it.That is right...we are all in it together, brokers and all.Merry Merry.Once in an iva aways in an iva.
Question for Shaun. Something that Andy Davie said be upfront with you about the IVA and I'm wondering about that? That's to say all you need to know is that they're squeeky clean. As a professional broker if you had material fact that they have had an IVA do you not to have shown due diligence to any potential lender to avoid recourse at a later date should it ever come to light. (which it won't)
I've no Idea why anyone holds the banks in such high self esteem they are corporate crooks at best, rate rigging, money laundering, tax fraud on a epic scale (UBS just been fined one billion euros) mis-selling etc. So any notion of where I tick a box is just laughable to worry about it.
One of the director heads of Experain who make the tools for the CML engine, was live on radio two and he said if you tell a fib on the application form, worst case you'll get declined and it won't be held against you, so much so you are free to apply again. When it comes to fraud they look for other things that's to say to take the banks money with the intention of not paying it back. So on the strength of that interview it settled it for me
nonewdebt once your IVA has finished it is exactly that.
Thank you everyone for taking this as it was meant.
I cannot understand why someone who successfully completes an IVA would be penalised for it. I'm especially peeved as I had no assets at the time I took mine out. Many people would have over-egged their outgoings and paid a fraction of what I paid back. I know that by definition I only paid a fraction of what I owed back myself, but it was still an IVA, an Individual Voluntary Arangement. its galling to think that the person who quit their job, paid £1 per month on a 3 year bankruptcy can be seen in a better light than me when I strove for promotions at work and increased my payment from £315 to £525 per month over 5 years.
Maybe I just need to accept that I lost to the system, but it would be nice to think that there was some regulatory body (the FCA?) who might apply some level of fairness. Of course, the chances are that they just take the draconian route and, rather than give move to IVA completionists, they just deny bankrupts access to credit for longer.
Iva should be only for small traders to help to get them to trade again after settling with creditors and turning a new leaf.Banks would accept that in principle.
Everyone else should go long term dmp with interest frozen or go bankrupt!
In doing so,it would aviod all the complications and aftermath seen with this legislations with little scope to 're-address it.
The act needs to be revised.
Not fit for its purpose now.
Last edited by TzeKin on Wed Oct 01, 2014 12:01 am, edited 1 time in total.
Hi Sponge, hope you are well. In answer to your question, once we are fixed with the knowledge then we would be duty-bound to disclose it to the lender, or otherwise risk not only our authorisation but also our relationship and/or facility with the lender. That's not to say that all brokers would see it the same. I guess the real point is that I can't see any benefit in making a false statement when actually there's no real need to do so, and then spend the next few weeks before completion not knowing whether it will be picked up at a later date, at which point you could have exchanged contracts and be legally bound to purchase the property but with no mortgage in place because the lender has withdrawn their offer!
Also, making an enquiry through a broker wouldn't prevent an applicant subsequently trying a different approach but obviously I wouldn't encourage that.
It's not so much about holding the banks in such high esteem. More often than not it's building societies we deal with but it's more to do with protecting borrowers and ourselves.
Re the man from Experian, I'm not particularly convinced because I'm not clear what his comment is based upon. He doesn't represent lenders nor the regulators. What I do know is that lenders share information extensively through various systems such as CIFAS and Hunter and making a false application could well be recorded for others to see.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Agowink I agree entirely that you shouldn't be penalised and, believe me, I argue the case regularly with lenders! However, ultimately it does boil down to the fact that mortgage lenders don't have to lend to someone they don't want to and it isn't within the FCA's remit to force them to do so.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Appreciate your comments on the inner workings of the Iva lending you posted to the two posters.
You make interesting points and there are two that I need to pick up.
You say you deal with building societies mainly.Something a few here had suspected as the old retail banks treat IVAers poorly.So we know it is true.This leads to good reason for people who may want not to disclose the iva history to a potential lender.
You can understand that can't you.If building societies are the only lenders you deal with then choice is seriously curtail which doesn't bode well in options? This is not my take but mentioned by another poster.I take no credit for that insight.
Now no amount of talking by your firm will change the retail banks position.They basically retaliated in the face of mounting ivas.Black listing IVAers thereafter for home loans.
I don't take any comfort from your inside information but only reinforce some opinions made here as to be facts.
Another thing is you guys charge a fee for a mortgage? Up to a thosand pounds? Aren't you been paid by the building societies.What is there to stop me from going direct and get the deal for a no fee.I like to hear your response?
Or do you have a magic wand to make the lending happen.
I considering a mortgage now so I am keen to know please.
Hi nonewdebt. It's not that we don't deal with banks, I'm just trying to portray the correct position and that it's not only them who do the lending. Their criteria will vary every bit as much as building societies. In terms of mortgage lending there's no real differentiation and there really isn't anything conspiratorial going on.
In terms of disclosure of the IVA that's ultimately up to a borrower, I'm just trying to point out the potential pitfalls.
Our firm does receive a nominal commission from the lenders, typically £300 on completion but I'm afraid that's not enough to support a professional practise so, yes we do charge a fee for success, again payable on completion. There is absolutely nothing preventing you applying directly to a lender if you believe that you are able to identify the best deal available and feel that you will meet the lenders criteria (published or otherwise). We don't have a magic wand, but we do have a detailed understanding of lenders criteria, what they like and don't like, and how to present cases positively to them. We do also have access to products not available directly from lenders. Your choice will be curtailed to an extend I'm afraid due to lenders criteria surrounding IVA's but please don't shoot the messenger - I don't set the criteria!
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Shaun now I'm not trying to trip you up here so bare with, if I'm not mistaken both you & ryan have stated that all trace of your IVA must be gone from your credit record before the prospective borrower approach's you, which then seems a bit pointless if you then declare it to the proposed lender anyway, somethings not sitting quite right if you see what I mean.
Personally I don't care how you secure mortgages for ex-IVA'ers it's just good that you can and do
So it's each to their own got it alone like myself and mole or pay's yer money and take the stress out of it, which is only right it's your living!
I've convinced myself that banks only ask, for they fear what they cannot see, why ask otherwise.
From what I understand Experian make the tools to detect fraudulent applications for the CML. This (director) was discussing the very subject of being less than truthful on your mortgage applications and the possible outcomes. As opposed with intent to nick the banks money. On the Steve Wright show of all things
Hi Sponge. Some of us remember Steve Wright being a cool guy on Radio 1!!
I don't recall having personally said that. The IVA disappearing from your credit file is certainly a bit of a water-shed to some lenders but it's nowhere near as clear cut as that. Some lenders consider applications based on the amount of time the IVA has been settled, therefore in the case of an IVA settled early this could be prior to the IVA disappearing. It also depends on many other factors (amount of deposit, mortgage history, reason for entering the IVA etc. etc.). Sometimes these factors influence the availability of a mortgage and sometimes they influence the range of product available.
Lenders can only rely on credit reference agencies to verify certain aspects of an applicants history and because the agency only supply records for the past 6 years that's all they can get, hence credit score techniques may only take that information into account when 'computer makes a decision'. That's why often people pass a credit score and are 'approved in principle' only to be turned down at a later date.
I don't know if that answers your question?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Not really buying it, but thanks for the reply it's appreciated. Me being a cynic I'm gonna say JUST post six years, there's not a HIGH st lender out there who would lend to an ex IVA er if it was disclosed, there you go I've said it now...Ha prove me wrong? (take affordability as a given) give me a name givey?
Reason for entering into an IVA really ohh you'll have a hard time to convince me that has any bearing, I mean cripes my case worker wrote mine!
