mortgage with joint iva?

[l_d]

I have an iva running at the moment for a year and a half now. My partner wishes to buy a house now she has no debt. Can i be added to the mortgage as a joint applicant with an iva?

[Oliver]

Do you both live together?!!

If you want to get onto the property ladder it is possible to take a mortgage out whilst you are in an IVA. Talk to your IP about the possibility of you taking a joint mortgage out. During an IVA you must NOT take any unsecured lending (without the express permission of your IP), however you will potentially be allowed to take out secured lending (i.e. a mortgage) if the following is satisfied
(i) The source of the deposit is not coming from you (as if you had any liquid assets these would be expected to go towards your creditors).
(ii) Having a mortgage will not affect you continuing to pay your agreed IVA monthly payment. If you can find a mortgage where you will pay the same or less than your rent this will usually be allowable as your creditors will be in no worse a position. However, if your mortgage arrangement is more than you currently pay on rent you will not be able to continue to pay your creditors the agreed monthly payment and it is unlikely that they will agree to reducing this.


Best Regards
Oliver

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

[l_d]

Thankyou for that we do live together at mo in rented accomadation and her brother in law is giving her the deposit. Is a specilised mortgage we would need to get or as im the second person on there does it matter? Also does this mean that the house would have to be added to the iva at the end?

[Oliver]

This is where it is vitally important for you to discuss this with your IP. Ideally you would be looking for you IP to make sure that there will be no equity release at the end of your IVA although the creditors may not agree to this. If you are someway into your IVA and you are not putting down any of the deposit it is unlikely that you will have amassed any releasable equity (equity that you can take out through secured borrowing) in the house by the time your IVA is due to finish but it is very important that you address these points with your IP.

Best Regards
Oliver

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

[MelanieGiles]

If you you are being added in name only, so there should be no problem with this. Apart from that Ollie's advice is yet again very detailed and correct. Make sure you let your IP know if you have a change of address.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk