my credit rating in the future

[rujahner]

If by choosing an IVA scheme, will it effect my credit rating in the future, in regards to an mortagage.
Thank

[accgroup]

Hello

Yes an IVA will affect your credit rating. It is a formal insolvency procedure and will appear on your credit reference file.

You should still be able to obtain a mortgage but the rate that you will be offered will be less competitive than if you were not subject to an IVA.

However if you successfully complete your IVA the record of it will not stay on your credit file forever, so it depends how long you were thinking of before applying for a mortgage (although some companies will specifically ask if you have been made bankrupt or entered into a formal agreement with your creditors in the past on the application).

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[iva_squirrel]

Hello,

Welcome to the forum.

Unlike bankruptcy, An IVA is not advertised in the newspapers, and the only people who will know about it are you and your creditors.

All IVAs are registered at a central database maintained by the government's Insolvency Service, and details of these are passed to credit reference agencies. During the term of the IVA you would find obtaining consumer credit very difficult, and even at the end of the IVA it is likely to remain on credit reference database for a while, depending on the credit reference agency's policy, usually 6 years from the date the IVA was approved.

If an IVA concludes successfully, your credit rating may be repaired more quickly than if it fails.

There are, however, mortgage lenders who specialise in offering remortgages to people in IVAs specifically for the purposes of paying off their debts in full. If this could apply to you, then you should take that option, as no lender will offer a mortgage to an undischarged bankrupt.


Kind regards,


Julia



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[MelanieGiles]

If you are in an IVA it is entirely possible to get a mortgage, but you will need to put at least a 10% deposit down, and this must be sourced from third party funds. Expect to pay between 1/2 and 1% higher than normal high street rates, so you would be better taking out a fixed rate deal timed to complete at the same time as the conclusion of your IVA.

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