www.iva.co.uk

Hi,
My wife and I entered an IVA in Sept 04, we have complied fully and now can see the end. How long after completion could we expect to wait before our credit is repaired? (We are keen to buy a home)
Thank you for your time.
Chris.

Hi
Your credit files will have details of your IVA until Sept 10,however you will be able to obtain a mortgage prior to this as secured lending has a different underwriting criterea than unsecured.
You will need to consult a mortgage broker
Regards

Hi Chris,

An IVA will show on your credit report for a duration of 6 years from its commencement. It is possible to obtain a mortgage, however you will need your I.P's express permission before going ahead with this. Also you will not get a high st lender's rate, as you will need to look in the sub-prime market, speak to a specialist broker.

Hi IVA Experts and Andy,
Thanks for replying. When the 6yrs have passed and I apply for a mortgage will the lender ask me if I have been in an IVA? and if so will it have an effect on my application? (assuming I have gone some way to repairing my credit rating in the 12mths prior to applying). Sorry to appear so naive, but what would be the best way to repair credit files, I am loathed to take out a loan, although I will need a second hand car when the IVA finishes?


Regards Chris (a man who has learnt a lesson).

Hi Chris

Yes, a lender will ask about your IVA. The IVA will affect your mortgage application, insofar as you will only be offered mortgage products supplied by lenders that allow IVAs in their lending criteria.

After your IVA has completed, the number of products that will be available to you will increase over time.

The rate you could achieve will depend on your personal circumstances, and will be improved, if you are able to prove a good payment profile on any credit taken out after your IVA. E.g. Paying on time, and always at least, the minimum amount due. Not for a second though, am I suggesting that you take out further credit....

An IVA will affect your ability to obtain most prime products until six years from the date of completion of your IVA. The IVA will stay on your credit record for six years from when the entry of the IVA was recorded.

Some lenders will allow you to obtain a mortgage whilst you are in an IVA, as long as your IVA has been conducted satisfactorily, you have the permission of your IP and you are able to provide a deposit of 15%+ from a third party.

Nearer the time, I would suggest that you speak to a mortgage broker that that is used to dealing with mortgage applications from people in IVAs.

Hi,
thanks very much for your time, and expertise, it's been a great help.
Regards Chris.