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Hello

I am thinking of applying for an IVA and have found information on this forum invaluble. I just have a few questions regarding life after IVA. Will I be able to get normal current accounts and apply for mortages? I have read on lots of postings about banks unwilling to give accounts to people in or in the process of applying for IVAs so just wondered what happens after the IVA.

Thanks for your help.

Hi Tygar and welcome to the forum,

The IVA stays on your credit report for 6 years from the start of the IVA.

Some banks, (I can’t name them, but, I’m sure someone on here can) will allow you to have a standard bank account (no overdraft or cheque book) during an IVA.

After the IVA is satisfied, most banks will allow you an account.

As far as mortgages are concerned;

During an IVA you will require the permission of your IP / Creditors to take out a mortgage and usually will be able to do so as long as the mortgage payments are not any more than the rent allowance. Obviously though, you would not have the required 10 to 15% deposit (as this would have been paid into your IVA) so you will need to find a friend or relative to provide that. A current IVA run satisfactorily counts as a sub prime mortgage application, and you would find it difficult, if not impossible to raise a mortgage on the high street. However, there are specialist mortgage brokers that can help you and people in IVA’s take out fairly competitive mortgages every day using these brokers.

After an IVA is satisfied, during the first 12 months of satisfying your IVA the mortgage rate you can achieve gets better, pretty much, with each passing month. After 12 months and depending on your personal circumstances, there are some minor high street mortgage products that will be available to you.
After 6 years and as long as your credit report remains stable you will be able to obtain high street mortgage products.


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Hi
You will need to get an account set up before your IVA with a non creditor and as long as this is not HSBC or First Direct your account will be fine.Do not take any credit facilities.
After your IVA is completed the IVA will be on your credit file for a further one year,after this you should be abe to open another bank account if you so wish.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
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Hello

Thanks for your help. I just thought I'd ask as I read elsewhere on this forum that some non-creditor banks will close your basic account once they get wind of your IVA. As the debt advisor from Consumer Credit Councelling Service suggested that I open a basic account and get my employer to transfer my wages to it, I am a bit worried about the bank then telling me they will close my account for no apparent reason.

The banks that are known to do this are HSBC and First Direct. I think Natwest have done it, but I don't know if it's company policy.

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I would say Tygar that if there is any doubt that your bank may freeze the account that your salary is paid into I would certainly take action and change your bank at the earliest opportunity and notify your employer of where your wages are to be paid into as a matter of priority. In situations like this you need to be a) one step ahead b)in control

Debbie[:)]

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