www.iva.co.uk

Mortgage fallen through

After months and months of heartache, my partner and I finally obtained a sub-prime mortgage through Future Mortgages just before they made all their mortgages 80% LTV.

Unfortunately there was some small print that our mortgage broker did not see which meant that we were not eligible for the mortgage.

Basically my IVA includes a credit card debt to Egg who apparently are owned by the same company that own Future Mortgages, Citigroup.

Because I defaulted on my Egg credit card they are unable to offer me a mortgage on any of their packages that belong to the same Citigroup.

My problem is...this was the last sub prime mortgage available to us with a LTV of about 87% and an interest rate of about 7.9%.

Any ideas on what we should do now as we have found a new house and have paid all the solicitor's fees etc and stand to lose an awful lot??

Hi there

Can you give us a little more information about your circumstances - such as the basis of your IVA and why you are looking to move house now. Is there any benefit to your creditors in you moving now?

Hello lollie,

Future Mortgages have been prominent in offering mortgages to those in IVA's for some time. As you stated in your post they recently changed their criteria to lower loan-to-value ratios but also to focus away from those in IVA's.

To be fair to them this is no different to most of the other lenders in the mortgage market.

I'm surprised that the broker did not spot the clause on related creditors; they've generally made that fairly clear in their communications with mortgage brokers and most brokers who specialise in this area would/should have been aware of this.

The mortgages available to you will depend entirely on your personal circumstances. For the purposes of information I worked on a case last week for an individual in an IVA and for them the highest loan to value currently available was 80%.