www.iva.co.uk

Hi,

I have just set up my IVA, it is in the process of getting approved, My only Worry is the only reason i have got in an iva is to clean my Credit up so i am able to apply for a mortgage in the future. There are many defaults on my file and i felt enough is enough so applying for an iva was the best option for me. Now i know somewhere down the line after 2.5 years my family have Promised to pay of whatever will be outstanding on the iva so i know i wont be in it that long.

My question is will the iva still stay on my file even if it fully settled and cleard in 2.5 years.

Also once it is cleared and i am still within the 6 year period within that period would i be able to apply for a mortgage or is it a no go situation until the full 5 years are up. I need to know as my main agenda is to get a mortgage and get on the property ladder as soon as possible.

Hi,
Your IVA will remain on your credit record for a full six years from the start regardless of when you finish.

A mortgage is pretty much a no go for 6 years from the start of the IVA as it will remain on file for 6 years. as will the defaults. Have read here: https://www.iva.co.uk/what-does-an-iva- ... dit-record

I can only confirm what has already been said, except to say that there are a few mortgage options if your IVA is still showing on your credit file but generally you will be in a narrow space and certainly require a significant deposit (think in terms of circa 20%). I'm afraid to say that, if the only reason you entered the IVA was in order to be able to secure a mortgage in the future, that probably won't help. I appreciate that there were probably other factors however.

Shaun Vickery wrote:

I can only confirm what has already been said, except to say that there are a few mortgage options if your IVA is still showing on your credit file but generally you will be in a narrow space and certainly require a significant deposit (think in terms of circa 20%). I'm afraid to say that, if the only reason you entered the IVA was in order to be able to secure a mortgage in the future, that probably won't help. I appreciate that there were probably other factors however.

The only reason I applied was that i know i will be getting a lot of defaults and could not keep up with my payments on time, also with 4 contracts and the company demanding 4500 upfront i new i was in a position of no return. I was stuck in a situation where there is no going back and had to get the situation resolved asap. my goal is to get a mortgage and i know my fmaily have promised to clear the iva 2.5 years down the line after i have 'learnt a lesson'.

my main aim is to get a mortgage and get it as soon as possible. My family are willing to help with the deposit of 20 percent like you stated but what im scared of is actually getting the mortgage with the iva still on file even though it would be paid off as a settlement fee. Will this hindre me getting a mortgage. Is there ways of getting a mortgage with an iva still on file. Will they have high interest rates. What will be the consequences of this


Reall apologise about all the question im just so confused. I have the plan mapped out but so many questions and i though its best to leave to the experts. apoogise about the short novel i have wrote.

any answers would be much appreciated

thanks

The Lenders who may lend if you pay the IVA off early will charge you a premium for doing so. Sadly some Lenders never lend after an IVA, many won't lend for at least 9 years from the start date, a few High Street Lenders may consider lending 6 years after the IVA began or possibly 3 years after Early settlement.

Regards

Ryan wrote:

The Lenders who may lend if you pay the IVA off early will charge you a premium for doing so. Sadly some Lenders never lend after an IVA, many won't lend for at least 9 years from the start date, a few High Street Lenders may consider lending 6 years after the IVA began or possibly 3 years after Early settlement.

Regards

So if i was to settle the Iva in say 3 years, there would be someone out there willing to give me a mortgage in say 3 years after, there is no way nobody will lend me in the last 3 years after settlement?

If this is the case would you be able to recommend some companies for me to look into. Or maybe i can use your guys help with this situation. i guess my main agenda is to get a mortgage and get it as soon as possible.

I totally follow your logic in entering the IVA in the first place but I'm relieved that it wasn't just to help you to obtain a mortgage. Once the IVA has been settled it may be possible for you to obtain a mortgage but of course none of us can guarantee (or realistically give too much of an indication) as to what lenders' criteria will in 2-3 years' time. It does change constantly. Realistically I think it highly unlikely that your IP would agree to you obtaining a mortgage whilst you are still in the IVA, even if a lender were prepared to. I'm sure both Ryan and/or myself will be happy to give you a better steer nearer the time?

Whilst I appreciate that you have a grand plan --- maybe you could step back a little and just concentrate on getting out of the current mess, before planning on hastily jumping into another one. Yes, in the fullness of time, a mortgage will be possible -- but you need to be financially savvy -- time does heal and it also brings better deals. You might find that this "lesson" your parents want you to learn has it's values. It certainly did with me and totally reset my relationship with money, credit and "magic plastic".

Shaun Vickery wrote:

I totally follow your logic in entering the IVA in the first place but I'm relieved that it wasn't just to help you to obtain a mortgage. Once the IVA has been settled it may be possible for you to obtain a mortgage but of course none of us can guarantee (or realistically give too much of an indication) as to what lenders' criteria will in 2-3 years' time. It does change constantly. Realistically I think it highly unlikely that your IP would agree to you obtaining a mortgage whilst you are still in the IVA, even if a lender were prepared to. I'm sure both Ryan and/or myself will be happy to give you a better steer nearer the time?

So if my iva is settled in 3 years why would my IP not be willing to accept a mortgage application?? Will he have a say in the matter as the iva would have been paid off. Would he still have a say in anything until the 6 years are over even though it was setlled in 3 years ?

GullyP123 wrote:

Shaun Vickery wrote:

I totally follow your logic in entering the IVA in the first place but I'm relieved that it wasn't just to help you to obtain a mortgage. Once the IVA has been settled it may be possible for you to obtain a mortgage but of course none of us can guarantee (or realistically give too much of an indication) as to what lenders' criteria will in 2-3 years' time. It does change constantly. Realistically I think it highly unlikely that your IP would agree to you obtaining a mortgage whilst you are still in the IVA, even if a lender were prepared to. I'm sure both Ryan and/or myself will be happy to give you a better steer nearer the time?

So if my iva is settled in 3 years why would my IP not be willing to accept a mortgage application?? Will he have a say in the matter as the iva would have been paid off. Would he still have a say in anything until the 6 years are over even though it was setlled in 3 years ?

The IP would not be the problem .... the fact that your credit records will be trashed will be the problem.

Hi Gully. I think you may have misread my message but I was trying to give you some pointers regarding the possibilities of obtaining a mortgage both after and during the IVA.

Agree - it has nothing to do with your IP. You need to wait until everything has dropped off your IVA.

Hi again, i am now 1 year into my iva, as shown above in my previous messages plans did not go as expected. i am now still in an iva and wanting to move out with my partner and get a mortgage. Is there anyone that can assist me in getting a mortgage whilst in an iva, my partners credit is squeaky clean but i am in an iva. is there any mortgage brokers outthere that can assist with a mortgage whilst in an iva

Whilst in an IVA you are not going to be able to get a mortgage.