www.iva.co.uk

Dear Sir/Madam,

I cleared my IVA in 2008, and have worked very hard since building my credit profile and saving for a flat. I do have a credit card theses days, which is cleared down every month and I am now in a position to apply for a mortgage.
I need advice on whether I need to declare that I was in an IVA when applying for a mortgage, as I am not sure whether I have to by law or not. I thought with bankruptcy you had to, but with an IVA you didn't, but obviously would like to know for sure please.

Many thanks and best regards,

Howard

...forgot to mention that the IVA process started in 2005, so I'm not sure if the 6 year period before it clears from my file is from the start of process, ie 2005, or from the completion date of 2008. Thanks to anybody that can help.

Hi iel781, I think if the question is asked you have to tell them you have previously been in an IVA.

It depends on the wording of the question. If you are asked if you are or have ever been bankrupt you can answer no. If you are asked if you are or have ever been in an IVA or an arrangement with your creditors then you need to answer yes.

The 6 year period starts from the date of your creditors' meeting, i.e. 2005.

Good luck!

thanks for the reply. i went through an application today, and it didn't specifically ask other than current credit history defaults. whether that then flags me up i don't know. For me, if it doesn't specifically ask, I will not tell.

That's how I look at it. I would never lie (the consequences aren't worth it) but I wouldn't offer any additional information.

I find that when you look at these detailed financial applications it is very easy to misread some of it. "Have you even been in an arrangement with Creditors" may be mistaken for "Are you currently in an arrangement with Creditors". Easy mistake to make.

You're right mole which would lead to a false answer so be aware!

Iel781 - if it didnt ask specifically then there is no need for you to declare it so you have answered honestly. Good luck with the mortgage application and househunting, how exciting!

Just like taking an exam. Read the question very carefully, then answer the question, not what you think the question is asking you.

Good luck.

Grey area, but if you're asked the question. "Have YOU ever made an arrangement with creditors" - The question does not specifically mention a IVA. Also it could be argued that the IP made the arrangement with creditors not YOU

It's a simple case of answering the questions you are asked on an application form, but I certainly wouldn't suggest relying on the argument that your IP entered the arrangement on your behalf. People do get confused with the fact that the IVA will only show on your credit file for 6 year. Ultimately you need to be truthful and if it asks the question 'have you ever...' then ever means ever! That said, the longer the IVA disappears into the past, the easier it becomes. It's just a case of finding a lender who accepts your overall circumstances.

Well I heard an interview live on radio 2 from the director head of Experian (he's important in the mortgages context) they make the tools that the council of mortgages lenders engine uses to detect fraud proper. And yes whilst he’s says not appropriate it actually won't be held against you, it's not what they're looking for in the sense of mortgage fraud (ie bogus developments or intent not to pay or misuse) If you go to the radio2 website and you need some reassurance I’m sure you can get a download it’s of great comfort for those post IVA on how to handle things.

And by act of parliament that debt not only disappears of public record post six years it is irrecoverable as if it never existed, so you could argue by written word of the law makers you maybe within your legal right to say no, least this is what my thought is.

The dogmatic course of what you must do I find highly inappropriate. I’d like to think we remain impartial, what you suggest Skippy is very very wrong and could have far reaching consequences on peoples futures and to my mind is something that cannot be interfered in, no matter where your compass arrow points

I say it is down to the individual to make the right choice as they see fit and yes def have a word with the brokers they can help you navigate round any tricky questions

Are you suggesting that I should tell someone it's ok to lie on a mortgage application sponge? If you actually read my answers I have said that the poster needs to answer the questions honestly and other posters seem to agree so I don't understand why you have a problem with my advice.

That would be interesting to listen to sponge. Can you tell me what day and time this was on radio 2?

http://www.bbc.co.uk/programmes/p00xnxp2

There's this one but I haven't listened to it, what I did find interesting was the final paragraph of the blurb on this one:

http://www.bbc.co.uk/programmes/b01p9f5k

Thanks lesley I'll have a listen