www.iva.co.uk

Hi everyone

I'm not a regular poster but did post a few weeks ago looking for some impartial advice about mortgages, renting and selling and just what would be a wise move etc etc.

Well we had our house valued yesterday and have made a profit (which we were very happy about) but to move into a bigger property we are going to struggle to get a mortgage without a hefty deposit. It looks like the majority of the profit would go into selling fees/moving costs so we would be back to square one.

We then went to speak to a financial advisor who said that unless we have at least a 10% deposit absolutely no lenders will touch us. To teleport our current mortgage to another property will involve credit checks. So all in all it looks like we might be stuck where we are

Am now wondering if renting a property is the only way forward for the next 6 years until our credit history is clean again?? However an advisor that my husband spoke to today said that because of the IVA we will need credit searches for renting and unlikely to get approval for that either. [:(][:(]

Which is ironic because we are better off now than we were 6 years ago when we bought the house and ended up with an IVA. Feel so frustrated now, it seems absolutely nothing has changed since completing our IVA.

Sorry to rant, just fed up really and not sure what to try next. Does anyone have any advice about renting either with or after an IVA?

Thanks

Lesley x

Hi Lesley

If you want to rent a property particularly through a letting agent, they will normally do a credit check which you might fail. However this does not mean that you cannot rent. My advice would be to speak to some local letting agents and see what the options are. You may find that when you explain your situation they are happy particularly as your IVA is now finished. Otherwise they might ask for a guarantor or some rent up front. Either way there will be a way to make the renting option happen if that is the way you want to go.

We sold our house whilst in an IVA and moved into rented. We had a little equity from the sale and were allowed to use this as a 6 month payment up front for the first six months rent. We then paid our rent monthly into a saving account and at the end of the 6 months we would pay it to the letting agent for the next 6 months rent .....it may be an option for you to consider, however what I would say if getting a mortgage after your IVA may take longer than you think especially as a larger deposit is likely to be required for a few years after the IVA concludes - some lenders will stay resistant to lending to ex-IVA'ers for a number of years after.