www.iva.co.uk

I finished my IVA early in June 2007 but am still struggling to get a mortgage (can't evene get a higher % option). Anyone had similar problems?

Neal - regardless that fact you finished the IVA early, it will remain on file for a total of 6 years - even after then you may need to use a broker have a large desposit. It is possible to get a mortgage after an IVA - it takes time and patience to rebuild a credit history. Remember everything will drop off the credit file after 6 years - so to a new lender, they WILL NOT see any history of well managed credit

Thanks Ginger. I know that some companies will take some risk of an ex IVA. I was wondering if anyone had managed to get a 'sympathetic' lender?

They are a few people - but unless to have a big deposit and use a broker who is aware of the situation - also expect to pay a higher interest rate, it unlikely that main stream lenders will offer any products.

I agree with the other comments it would be very difficult to get a mortgage with an IVA on your record and if you did the interest rate would be prohibitive. Banks etc.. are being extremely cautious now when lending money and unless you meet a number of criteria you are unlikely to get a mortgage. I couldn't even get a debit card recently!

Hi Neil
Welcome from me too. Luluj has just finished her IVA and got a mortgage thru a broker however she did have 50% deposit. If you hang around sure she will give her input here...

A whacking great deposit will help but otherwise I'd concentrate on repairing your credit file to make you more mortgage worthy once the iva is off your record.

It is crazy tho that nearly 5 years after you completed your IVA you are still not able to get a regular mortgage!

Try a whole of mortgage broker, they may be able to help you.

Hi
If your IVA is off your credit record you should stand as good a chance as anyone of a decent mortgage rate
Regards

Thank you everyone for your input. I suspect I will have to wait the 6 years from termination to get my credit file cleared.

Neal - 6years from the start of the IVA - in meantime save like heck! and look around at some products that can help to rebuild your credit history.

It takes time and patience - but you will get there - there a lot of us that have been through the IVA - came out the otherside, and have access to mortgages and main stream credit

Ginge, 6 years from start of IVA? I started in April 2005. Does that mean I can clean my credit file?

Your IVA should now be off the register Neal - have you checked?

Also check your credit record to see what is recorded on there.

if you started in april 2005 your credit file would have cleared april this year although it pays just to check and make sure it has gone. Although it may have gone from your credit file you will still have no credit history anymore and you have to start from scratch again. I have spoken to my a family member who is an accountant and she has told me once i have finished my iva the best way to repair my credit file is to unfortunatly get credit again eg a credit card with a very small limit that you have to put a small purchase on then only pay the minimum each month until it is cleared. The reason for only making the minimum payment is to show that you have taken credit and payed each month without fail. Whereas if you pay it in full each month it doesnt show on your credit file as taking credit. It does seem as though you are going to go back a step but when a creditor checks your file they are looking to see if you make regular payments on your credit, hence once the iva drops off there is no evidence of this anymore

Credit cards will report to the CRA, regardless of whether you pay it off in full or not each month. It also shows on your file what your credit limit is and shows that your payments are made each month and show as up to date and satisfactory.

The good thing is once the IVA and defaults have dropped off your file, and all your other accounts being reported on show as satisifactory, you end up with a perfect experian credit rating of 999.

Also previous credit accounts, still show up as settled on my file which will add to the positive credit score. e.g. first direct closed the accounts a good year after the start of the iva. Their default on a combined entry which is seperate to the settled accounts will have gone but those old settled accounts will still remain adding positive data to my credit file

It is just the time factor unfortunatly.