www.iva.co.uk

I recently noticed a bank stating that to apply for their mortgage you needed to have never had an IVA or been made bankrupt. I'd assumed that all record of an IVA is removed after 6 years. How are they able to validate this?

Because one of the questions that you have to answer is "have you ever been the subject of an iva or bankruptcy" and to answer no would be mortgage fraud

With the new mortgage rules they should be welcoming ex-IVAers with open arms. We've proved we can live on a budget!

Unfortunately its their money and they can lend to whom they please.

The question of "have you even been bankrupt or made an arrangement with your creditors",appears all too commonplace on credit applications nowadays.

paul

I wouldn't overwork it, many ex IVA'ers have secured high st mortgages, use a broker if preferred to help you navigate the odd tricky question.

I was listening to radio 2 Steve Wright show last year and they had an interview with one of the heads of Experian (they make the tools that the CML use to detect suspected mortgage fraud) and quite simply put you are not what they are after, so say the man, it's worth a listen!

Researching a bit further would suggest lenders use credit ref agencies, National Hunter and CIFAS. None of these should flag a "spent" IVA from what I can see.

PS - thanks for feedback so far

I can't cast iron this but suggest that lenders are blind post "statute of limitations" extent. This is where you'll see the six year thing came about. There are some suggestions that banking groups keep there own lists but based on personal experience I'm not so sure they do!

What I can't comprehend is that, post IVA, most of us could swap mortgage companies with relative ease, even with huge debts hanging
over us. Now we don't have those huge debts (in fact no debt) and, in our case, never ever missed a mortgage payment in our lives, the mortgage companies won't touch us with a barge pole!!! Is it a case of us being too good now so they won't ever make money out of us, whereas before there was always that chance we would default? Make me wonder.......

Meant pre IVA obviously [:I]

If you tell a cat where the mouse is the cat will be sure to find it. Now if you don't tell the cat where a mouse is the cat may never find it.