Could I get a 90% LTV mortgage 3 yrs after iva

[dannygee22]

Getting a 90% LTV mortgage 3 years after settling an IVA with a full and final? Is this possible in the current climate?

[dannygee22]

Hi,

Just to give a little bit more context around this. I Would really appreciate anyones help or advice here, as it's getting pretty desperate.

I entered into an IVA in September 2016, after 6 years of being in a debt management plan.It looked like the best solution for me, and at the time was great relief. Even more so, as the next year my in-laws offered me a lump sum to make a Full and Final settlement, and so I settled the IVA on September 17th 2017.

I received a very good promition at work, so I then set about trying to improve my credit score, and saving as hard as I possibly could with my wife, so that we could finally own a property. The savings plan was going extermely well, and just prior to the Covid crisis we had an offer accepted on a new build property using H2B, and an AIP in place which was 2.4 years after the settlement which seemed too good to be true!

Unfortunately, it was. As soon as Covid hit, the offer was withdrawn, and it was impossible to get a new Help to Buy Mortgage, and we ended up having to pull out of the purchase, which cost us £300. It could of course been a lot worse.

I am not a first time buyer,the main reason I had to enter the IVA, due to the Credit Crunch, so my wife and I have since decided that due tho the changes that are coming in with Help to Buy in March 2021, we felt too pressured on that, and have decided to lower our maximum purchase price, and look at 90% LTV mortgages.

I have had a conversation with my financial advisor, and I understand that prior to Covid, there were lenders who would consider 90% LTV mortgages for people who settled their IVA over 3 years ago (which will be me in September), but now those mortages do not exist, and I would need to wait 6 years.

I am not young, 43 years old, and I have a young family, with a daughter with health issues, and I need to get moving on this as quickly as possible. We currently live in a not great rental property, but we are living with it, as every spare penny we have goes into Savings. I am beyond frustrated, I have done everything I possibly can, my credit rating has improved (it's obviously not perfect, but is going well), we have saved the deposit,or will have very shortly, but the dream of owning a house still seems to be getting further and further away.

I know it's very unlikely that anyone will lend to me now, but is it possible in anyone's experience of the current market to get a 90% LTV mortgage after 3 years of completion of an IVA? One other slight complication is my wife is self employed, however, she has been mainly working during the pandemic, apart from a slight blip at lock down, and has 3 years SA302's.

Any help/advice anyone can offer here would be greatly appreciated. I could really do with some good news.

Thanks

Dan

[kallis3]

Have a chat to one of our two mortgage experts - details can be found under the expert link on the left hand side of the page and see if they can help.

[Foggy]

One thing to consider ---- the IVA is still on your credit file .... some lenders when saying "three years after the IVA is settled", assume the thing went the full term and will have fallen off the credit files by then. In your situation this isn't the case.

Added to this the current situation and the possibility of a deep recession an house with 10% equity might well fall into negative equity pretty soon ---- and this is something the lenders will want to avoid as they will be losing any security. So, I would think the chnaces are pretty much slim to zero until things settle a bit. But, never say never.

[dannygee22]

Have a chat to one of our two mortgage experts - details can be found under the expert link on the left hand side of the page and see if they can help.

Thanks. I will take a look.

[dannygee22]

One thing to consider ---- the IVA is still on your credit file .... some lenders when saying "three years after the IVA is settled", assume the thing went the full term and will have fallen off the credit files by then. In your situation this isn't the case.

Added to this the current situation and the possibility of a deep recession an house with 10% equity might well fall into negative equity pretty soon ---- and this is something the lenders will want to avoid as they will be losing any security. So, I would think the chnaces are pretty much slim to zero until things settle a bit. But, never say never.

Yes. I thought settling would be the best thing to do. Turns out maybe not. Thanks anyway

[Ryan]

Hi dannygee22,
Sorry to hear this, there were a lot of lenders who pulled out of the market once lock-down happened, and being honest not many have really returned as yet, but we have helped many posters on this forum obtain mortgages during this period.
There are still lenders who will consider you, they will just want a more detailed picture

[luluj]

Great to hear of the options you potentially have - I would have a chat with Ryan in more detail off the forum so he can advise you further.
Through personal experience of Ryan's firm I can vouch for the excellent support and advice you receive.

[dannygee22]

Great to hear of the options you potentially have - I would have a chat with Ryan in more detail off the forum so he can advise you further.
Through personal experience of Ryan's firm I can vouch for the excellent support and advice you receive.

Thanks, fingers crossed!

[dannygee22]

Hi dannygee22,
Sorry to hear this, there were a lot of lenders who pulled out of the market once lock-down happened, and being honest not many have really returned as yet, but we have helped many posters on this forum obtain mortgages during this period.
There are still lenders who will consider you, they will just want a more detailed picture

Hi Ryan,
Thanks for this, maybe a glimmer of hope! Just for clarification though, is it possible to get a 90% LTV currently after 3 years. Looking at your website, it says up to 85% if satisfied within the last 6 years?

Thanks

[Ryan]

Hi,
There are if you are using the HTB scheme, this is only happened recently

[dannygee22]

Hi,
There are if you are using the HTB scheme, this is only happened recently

Thanks Ryan, as mentioend though, I'm not sure about the timing of H2B, and if this is still an option for us, with the end date being March next year. It is something to consider though.

[Ryan]

Hi,
I am sure i can get you in a position to buy now if you want to use HTB, and personally i think it will be extended.
If you want to buy a 2nd hand home, then there are still options when the IVA is satisfied over 3yrs, just more complicated.
If your IFA does not know this, then you really need to speak to an expert.

[dannygee22]

Hi,
I am sure i can get you in a position to buy now if you want to use HTB, and personally i think it will be extended.
If you want to buy a 2nd hand home, then there are still options when the IVA is satisfied over 3yrs, just more complicated.
If your IFA does not know this, then you really need to speak to an expert.

Thanks Ryan.
The more we have thought about H2B the less keen we are on using it. Our budget and savings allow us to get the property type we are looking for without using it, so we would prefer not to have the extra burden.
However, it would need to be 90% LTV. I understand this is complicated, but are you saying that is possible after 3 years completion?

[Foggy]

Danny ... why not contact Ryan direct ? Then you can get down to the nitty gritty details that you do not want to divulge in an open forum