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During a IVA would your credit rating be affected for applying for a mortgage (brand new)

An IVA will show as an adverse mark on your credit file for a period of 6 years from it's start. This will not necessarily prevent you from getting a mortgage though as this would be possible through the sub-prime market.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Lionel and Welcome to the Forum!

The answer is yes your credit rating will be affected as an IVA will remain on your credit file for a duration of 6 years from its commencement.

You will still be able to get a mortgage, however this can only be done with the express permission of your Supervisor (I.P). You would need to speak with a specialised mortgage broker but the possible downside is that your mortgage rate would not be as good as that which a high street lender could give.

Best Regards. IVA Experts

Obtaining a mortgage whilst you are in an IVA, should only be undertaken if you have third party funds to pay for the deposit - usually 15% of the purchase price - and that the mortgage payments are equal to or less than you are currently paying in rent.

You should also be aware that it is predicted that interest rates will continue to rise over the next couple of years, so a fixed rate package may be beneficial to one which is variable, if you meet the above criteria.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk