will i be able to buy a house in future

[kev.a]

if i enter into an iva will i be able to buy a house in future. e.g. be able to get a morgage as this is something i dont have and would be a first time buyer. if i could would morgage lender be put off by me being in a iva agreement? thanks

[BrassicLintus]

I'm not an expert Kev, but from what I can gather getting a mortgage shouldn't be a problem, even if you're in an IVA. However i don't think you'd get a mortgage with a high street lender, and you'll probably end up paying a higher rate of interest. But I myself have made enquiries and some of the rates available aren't as bad as they used to be. I believe Welsh Boy who posts on here is your man to ask. But a word of advice, check the small print of any mortgage!!! I've got a self cert mortgage and at the beginning I was paying just £350 a month, and I thought that it was fixed for 3 years. However my payments have gone up and up and I'm now paying £530 and am tied in for another 6 months!!!!!

[iva_squirrel]

Hi kev.a and welcome,

You will need the express permission of your IP and make sure it wont cost you more than renting. You will also need the money for a deposit somewhere between 10-15% of the property value.

Regards,
Michelle P.

[Oliver]

Getting a mortgage during or after an IVA is not generally a problem, although you may have to go through the "sub-prime" market and use a specialist Broker. This shouldn't result in much more than 0.5-1% increase over high street rates.

If you want to take a mortgage out during your IVA you will need the express permission of your IP. You will also need a third party to fund your deposit (likely to be c10% of the value) and you will need to ensure that your mortgage payments do not affect your ability to meet your monthly IVA commitment.


Best Regards
Oliver

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

[MelanieGiles]

Many of my ex-clients - who strangely seem to want to keep in touch with their ex-IP (I get lots of Xmas cards!) have successfully purchased properties once their IVA has concluded. You may a little higher interest rate for a while, but you will soon be repatriated back into the creditworthy marketplace - just don't get tempted by any more offers of credit!

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

[iva experts]

Hi Kev,

It is definitley possible but the first call I would be making is to your I.P, as they are the only ones who can give you permission to gain a mortgage whilst in an IVA.

You will need a family or friend to provide the deposit needed, then once you have completed your IVA you can start to pay them back with your disposable income.

Best Regards. IVA Experts

[mikebdomain]

Hi Kev.a

From a mortgage brokers perspective

The answer is yes you can, but....

Once your IVA company has agreed that you can take out a mortgage and you have been able to source enough funding for a deposit and fees. And as long as your IVA has been conducted satisfactorily , you will be able to take out a 90% first time buyer mortgage through most brokers.

This first mortgage during your IVA will be with an adverse credit lender and will have a slightly higher APR than most high street lenders. Most brokers however, will keep in contact with you and switch you to a better deal when your circumstances allow.

I am not sure how this will effect your IVA agreement, as most agreements that I have seen, where there is property involved, carry a clause where as your required to remortgage or sell your property in the fourth year of the IVA.


FREE ADVICE IS THE BEST ADVICE

[MelanieGiles]

The equity release clause will only affect property which were owned at the start of the IVA. And your mortgage payments should not exceed that wich you are currently paying in rental.

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

[mikebdomain]

just one point to remember - stated in one of our main lenders criteria;

"An applicant is acceptable if they have entered into an IVA which has been satisfactorily conducted or satisfied. A trust deed (Scottish equivalent of an IVA) remaining outstanding must be repaid in full upon completion with the trustees consent. An IVA will be deemed to have been conducted satisfactorily if the credit search shows it is still outstanding with no note that it has failed. If the search shows the IVA failed within the last 12 months, the application will be declined"

So in addition to my above answer;

1) If you wish to buy a property in the future whilst in an IVA you must ensure it (the IVA) does not fail.

2) There is no minimum period that you must be in an IVA before you can make an application for a mortgage.



FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

[Adam Davies]

Hi Mike
Good info
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp