Will it help if he pays the IVA off early?

[sam82]

My fiance is in the final year of his IVA and we are trying to buy our first home together but we are not having much luck because of the IVA. Will it help if he pays the IVA off early?

[neverending]

Hi
Well as long as your fiance has conducted his IVA correctly and gains permission from his IP then there should be no problem,unless you are trying to get a mortgage from a High st bank.
You need to contact a broker and they will soon be able to find a suitable lender in the sub prime market.
I can see no advantage,regarding a mortgage application ,in paying off the IVA early.
Welsh boy on this forum is a mortgage broker and has been highly recommended.
Good Luck

[MelanieGiles]

Hi saman

Where is the deposit coming from to fund the purchase? I cannot see why you are having difficulty in securing a mortgage, as clients of mine seem to have no problem - albeit you will pay a little more for it because of your partner's credit rating and the fact that he is in an IVA.

It may be more sensible to put your plans on hold until the IVA has concluded - and this could be alleviated by effecting an early settlement. Again this money will have to be sourced from somewhere.

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

[sam82]

[:)]Thank You for your advise.
I have £10,600 in a trust account and then a i have a bit put to one side saved in my bank account which i can use as a deposit for a property and if needs be then pay off my fiance's IVA if it will help.
We tried last year to get a mortgage but the only lender was Preffered mortgages and the only problem with them was the mortgage repayments would be reviewed every 3 months and therefore would probably rise. I only work part time as i stay at home to look after our 18 month old son and my fiance only earns £16,900 a year. So our combined earnings are not great and limits us to a small amount for a mortgage-if we could get one. The mortgage with Preffered was found through a broker.

[MelanieGiles]

Hi sam

Well it all sounds like a good idea to proceed with, and I am really suprised that you are not able to source a mortgage.

May I suggest you call a broker who I work with quite extensively to see whether he can find you anything suitable. His name is Tony Parsons and his mobile number is 07970-438874. He also regularly posts on the forum.

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