credit rating after the IVA has finished

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andrew.w

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Post by andrew.w » Wed Feb 07, 2007 6:17 pm
Hello
Im currently one year in to an IVA, could you tell me what happens to my credit rating after the IVA has finished???
And how long will it take to be restored to its previous value???
Also if i was thinking of getting a mortgage what peneltys will i undertake? and is it possible to take a mortage????

many thanks
 
 

neverending

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Post by neverending » Wed Feb 07, 2007 7:28 pm
Hi
I can answer your question regarding mortgages.
Their are many companies offering sub prime mortgage and you will have no problem getting one as long as you have a deposit [however you will probably need 15-20%].You will have a slightly higher interest rate but this should be still quite competitive.Your lender will want proof that your IVA is completed and this can be done by showing them the certificate that you will receive from yout IP on completion of your IVA.
You can take a mortgage out whilst in an IVA but will need approval from your IP and a deposit that comes from a third party[family etc] as any money that you receive such as a windfall will have to go towards your IVA.Also whilst in an IVA your mortgage payments will need to be similar to your current rental payments,once your IVA is completed then obviously that would not matter.
Regards
Andy Davie
 
 

jamesfalla

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Post by jamesfalla » Wed Feb 07, 2007 7:45 pm
Andrew

If you are in an IVA, this is registered on your credit file. Normally, an IVA will last for a maximum of 5 years. After the IVA is completed, your debts are then called “Satisfied”. You will receive a certificate of satisfaction from your insolvency Practitioner. The record of your IVA will continue to remain on your credit file for 1 additional year (a total of 6 years from the first day of the IVA).

In terms of you getting credit again, it is normal that you will continue to be refused credit for a total of 6 years. In order to minimise the problems, once your IVA is finished, you should send a copy of your certificate of satisfaction to both of the credit agencies (Experian and Equifax). They will then mark against the IVA record that it has been satisfied. It will then be down to the individual lender to decide whether they want to lend to you or not.

As Neverending says, generally, you will be able to take a mortgage with little problem. You should get advice from a specialist broker and you might not bet the best interest rates on the high street. However, the way to overcome this is to take a two year deal and then swap the mortgage again after that.

This may all sound like doom and gloom. However, remember, although you will be living on a tight budget while you are in an IVA, after it has completed you will be able to keep 100% of your disposable income. Instead of buying the things you want on credit, you will be used to living without your disposable income and so you could then start saving to buy the things you want for cash!

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. My book, "IVA, Bankruptcy and Other Debt Solutions" was published in 2006. I have made numerous TV and radio appearances including BBC1 News, BBC News 24, Radio 4 and Wake up to Money.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk
James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

PeterRadcliffe

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Post by PeterRadcliffe » Mon Jul 08, 2019 10:35 am
I’d recommend that you access your credit report via all three agencies. You can get a one-off 'statutory credit report' from each of them online, or by post, for just £2.So if your IVA was five years long then the record of it will only stay on for a further 12 months after the IVA ends.

Allywally

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Post by Allywally » Mon Jul 08, 2019 11:02 am
Hi
Does being on the insolvency register for three months from receiving completion certificate still have an adverse effect?

PeterRadcliffe

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Post by PeterRadcliffe » Thu Jul 18, 2019 10:17 am
I'd recommend that you access your credit report via all three agencies. Your IVA will stay on your credit file for six years from the day it started. So, if your IVA was five years longer then the record of it will only stay on for a further 12 months after the IVA ends.
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