Hi I have been in my IVA since August 2010. We have recently accepted an offer on our home and I was hoping to be able to pay our IVA off with the equity, and go into rented accommodation. If we were to do this I wondered what is the likelihood of us getting a mortgage next year after clearing IVA early? My current mortgage company have said as long as when we sell if we bought a home and mortgaged it for less than our current mortgage they would give us 90% LTV. But we would need to continue being in our IVA until August 2015 as would not have any spare money to offer creditors a lump sum. What would your recommendation be for this situation I am really confused what's best to do.
Laura, I would definately not step off the property ladder as securing another mortgage would be virtually impossible.
Just out of interest who is your mortgage provider. I would imagine that 90% LTV even if you don't increase your borrowing is a very good offer.
It is difficult for anyone to recommend a solution to you, as you are effectively gambling on being able to get a mortgage at some time in the future which will be dependent upon market conditions at that time.
Is your biggest priority at the moment clearing the IVA, or do you need to move house for any particular reason. I would share Carrie's concerns that you may not get what you ultimately want at the end of the day.
A mortgage broker who deals with the whole of the market may be able to help in the future. We have two experts on the forum who may be able to offer you some reassurance ...Ryan and Shaun. Their contacts are under 'ask the experts ' on the left.
I sold our house at the outset of our IVA and four years on Ryan successfully gained us a mortgage .... Since then he has helped over another dozen or so forum members get onto the property ladder. Never say never but you may have to have a slighly higher deposit and mortgage rate...good luck.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
