I am applying for a mortgage like others with Nationwide. However between 2002 up to 2007 I accumulated debts due to renting, living expenses, financing furniture, clothing, vehicle etc. Due to living cost/wage I was unable to keep up payments and sought advice from Citizens Advice Bureau. I took this advice a step further and approached IVA company making regular payments. Unfortunately I received large utility bills and car maintenance charges. Unable to keep up with the IVA payments the IVA was dissolved in March 2009. Not receiving any further correspondence from my creditors in 2011 I contacted all credit reference agencies to view my credit history and obtain a true picture. Contacting a financial advisor I discussed the level of debt I had and current financial position. I confirmed that I have not had any correspondence with any of my creditors since 2008. I have no CCJ's and have never had any attachment of earnings orders. I was advised as the debts are unsecured, over 6 yrs old and had no contact - the Limitation Act 1980 applies and all of my debt mentioned are statute barred and cannot acquire monies from myself. My Credit file is now clear and no IVA is registered with the insolvency register.
I have now matured and have a good job and salary. When applying for a mortgage it asks whether I have had an IVA. I will be truthful even though I have spoken to a mortgage broker who doesn't feel it is necessary. My only concern is that I do not have any certificate to support the IVA and if asked for this, will the lender likely decline the mortgage.
I can only suggest that you have a chat with a mortgage broker with experience of dealing with those of us with bad credit in our histories as a declined application could cause its own issues going forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with Foggy..speak to someone like Ryan and or Shaun, experts on this page with years of experience helping people gain mortgages following their iva journeys.
First of all, thank you kindly all for your replies.
To answer the additional questions, I can confirm since the IVA was dissolved and any trace of debt removed from my credit file, I have successfully applied for new bank loans and credit cards, all which received regular repayments and paid off. I hold 3 high street bank credit cards all with nil balances. 999 Credit score with Experian, Check My File score of 875 which covers all of the credit agencies.
In April 2021, applied for a mortgage through our broker and completed the application based on their advice that as it was 11 years ago and clean credit file to not include details of a previous IVA. Unfortunately as part of the final checks of the mortgage application, a month after application the valuation survey took place and the lender downvalued the property by £20,000. With the vendor not wanting to renegotiate we didn’t continue with the mortgage or the broker as they were unreliable.
We have now found a new property and will reapply for a new mortgage but with the same lender directly, but on this occasion making sure the application is honest and correct.
My concern is, without a certificate of completion which I am sure they will request, the lender may now either reject a mortgage application or provide unfavourable rates than provided previously.
I think it may be best to use an appropriate broker who can look for lenders who provide favourable rates but at the same time re IVA ask in the last 6 years, rather than ask ‘if ever’.
Ryan deals with lenders who will accept an IVA in the past, depending on all of your circumstances -- a phone call costs nothing. He has assisted many forum members, as has Shaun.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
