www.iva.co.uk

Hi, I am coming to the end of my fifth year in an IVA. I was hoping to get a first time buyer mortgage once my IVA has completed. I was wondering what the chances of getting one? How much different it would be financially compared to someone without an IVA? Would it be possible to get a 100% mortgage?

Phil

Hi Phil,

Your credit rating will be shot for another twelve months after your IVA has been completed, so this will probably affect your chances of further credit at the moment.

I doubt you will get 100% mortgage - don't think anyone is doing them at the moment. You will be lucky to get 85%.

Will I always have to apply for an adverse credit mortgage, even years from now?

I doubt it. Your record will be free 12 months after your IVA has finished. You may need to build it up again (mobile phone contracts, bank accounts, a credit card with a small limit which you pay off monthly).

There is no reason why, a few years down the line, you shouldn't get a normal mortgage. Have to wait till the credit crunch is over though for 100% ones.

You wont always have to apply for an adverse credit rating mortgage,but given the current climate I wouldnt expect to get a good deal even if you were very credit worthy,the deals just arent as good as they were.