Hello, i am currently in month 49 of a 7 year IVA. I havent missed a payment and currently paying back £459 a month. I also pay rent of nearly £500pcm. I have an opprotunity to purchase a house with my brother. It is a great investment and my half of the mortgage payment would be less than the rent i currently pay. What are the rules surrounding IVA's and mortgages? I have been informed it can be done but very difficult. Also do you know of any other IVA's over 84months as i haven't come across any others on the forum. Kind regards.
You will find it very hard to get a mortgage whilst you are in an IVA due to your credit rating. You would need to inform your IP and get permission to do it. If it means that your monthly payments would be less then I imagine they would be happy to agree as it would free up more money to your creditors.
As to the length of your IVA, did they say why it is due to run for such a long period? Was there a minimum dividend? It's unusual but not unheard of.
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It may be better if your brother bought the property on his own and you can pay him rent. It would be difficult to source a mortgage and also your IP may ask for an equity release from the property if any was available in year six. Seven year IVAs are very uunusual especially since you do not own a property. Why did you not go bankrupt rather than agree to this?
Hi Peter - Michael makes a good suggestion - if that is impossible as your brother cannot get one on his own you can get a mortgage yes - with approval from your IP.... BUT you will both probably end up paying a higher level of interest and be excluded from many products on the mortgage market due to your credit record and you leave yourself open to either having to paying some equity release if there is some to be released in your name (your 50% share of the equity between 85% of your house value and the oustanding mortgage) or to possible extending it even further if there is equity but you cannot release it. If the property is such a great bargain I can imsgaine there will be equity otherwise you wouldn't do it. If its just an opoortunity and a good idea - can it wait until your IVA is over and you look at buying somewhere else together?
Regards,
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