www.iva.co.uk

can you take out a mortage while your in an iva

There are circumstances in which you can, but I have to say that you may not find it easy.
If you are in an IVA then speak to your IP, if not then seek professional advice.

It is possible to get a mortgage while in an IVA but you would need the express permission from your IP and they would expect it not to affect the contributions to your IVA.
You MAY be subject to higher interest rates but that would depend on your own personal circumstances.
There are a few good mortgage brokers who post on this forum

sarah

You can take out a mortgage whilst in an IVA but as Mrs Skint correctly states you need the permission of your IP first. The rate will reflect your particular circumstance, this would be found after a credit search is done (with your permission).Tony

You can take out a mortgage while in an IVA BUT - and it is a very big but - you do need the permission of the IP. Are you in a fixed rate coming to an end?

You probably have a clause in the IVA requiring you to remortgage in year 4 and release equity for the benefit of the creditors. You have also probably signed an LX1 ( think that is right) form that lodges an interest in the property by the supervison making it impossible to remortgage without them authorising it.

You can check this on the land registry site for £2.

Also to remortgage the mortgage company would need conformation from the IP that you have conducted the IVA to a satisfactorily.

Also if you were to remortgage at this point you would need to pass any benefit to the IP.

I am working with a client at present who is in an IVA and on a fixed interest rate for 3 years ( rate is 6%) . That rate is set to move to the standard variable rate for the sub prime mortgage company ( about 10%) and will mean that her mortgage payments will increase by £370 per month during the IVA period. The problem they have is that this increase would mean that they couldn't pay the IVA contributions - problem! - thus my involvement.

Hopefully this is not your situation?

The form is an RX1, but apart from that I concur with Paul's advice - although mortgage brokers working for me at the moment are getting mortgages for clients in IVAs at less than 7% - perhaps I should introduce them to you Paul!

Hi Melanie
had a long day today so thanks for the correction. Would love to meet your mortgage brokers.
this client was already in a high adverse mortgage before I met them and had an unpleasant redemption clause.

Just think it is always worth considering and reviewing the mortgage position before one enters an IVA because you might be agreeing to something that is not possible in a coupele of years time.

Absolutely correct - and something that I would always do as a matter of interest. The good mortgage brokers are also in Cardiff, so you could combine a trip!