Early settled IVA

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Lumart78
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by Lumart78 » Thu Jan 04, 2018 1:55 pm
Hi,
We have settled our IVA 2 yrs earlier (the full and final payment was back in September last year '17)

We are waiting for our certificate to be issued.

My question is this, once we have our Settled Certificate, are we able to approach high street lenders for a mortgage?

We already have a house and have made a profit on it of around £100k which we can invest in the new property, but we need to move to a bigger house.

Would we need to wait until the whole 6 yrs are over before we can apply to a high street lender?

THanks
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Foggy
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by Foggy » Thu Jan 04, 2018 2:04 pm
There is a possibility of a mortgage while the IVA is still on your file -- but you would be talking adverse rates. Far better to wait until the credit files clear and more lenders will become available with high street rates.
GottaGetThruThis
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by GottaGetThruThis » Thu Jan 04, 2018 2:19 pm
I've just had a chat with an IVA mortgage broker to ask this for my own situation.

It was a colleague of Ryan's (from the IVA Experts section) as Ryan wasn't available, and his advice was that if you settle an IVA early but are still within 6 years of the start date then you can get a mortgage through a broker but would have to pay a higher deposit or rate as, while you would be solvent following the F&F of the IVA, the IVA would still be on your file.
Lumart78
Posts: 5
by Lumart78 » Thu Jan 04, 2018 2:42 pm
GottaGetThruThis wrote:
I've just had a chat with an IVA mortgage broker to ask this for my own situation.

It was a colleague of Ryan's (from the IVA Experts section) as Ryan wasn't available, and his advice was that if you settle an IVA early but are still within 6 years of the start date then you can get a mortgage through a broker but would have to pay a higher deposit or rate as, while you would be solvent following the F&F of the IVA, the IVA would still be on your file.


I thought that - we're so desperate for a bigger house, we only have a 2 bed and have been on a sofabed for nearly 2 yrs so my children have a room each
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kallis3
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by kallis3 » Thu Jan 04, 2018 3:04 pm
I would certainly speak to either Ryan or Shaun to see what can be done.
GottaGetThruThis
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by GottaGetThruThis » Thu Jan 04, 2018 3:06 pm
Lumart78 wrote:
I thought that - we're so desperate for a bigger house, we only have a 2 bed and have been on a sofabed for nearly 2 yrs so my children have a room each


Were you and your partner both on the IVA? If just you, maybe your partner could apply for a solo mortgage while you pay her half each month?

Otherwise could you rent a larger place for the rest of your IVA term and sell your current house after you get your certificate? You may need to give so many months rent in advance but this would give you more space.
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kallis3
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by kallis3 » Thu Jan 04, 2018 3:15 pm
If they were both in an IVA then both will have the same problems and even they are not, the other one may find their credit record tainted by association.
Lumart78
Posts: 5
by Lumart78 » Thu Jan 04, 2018 3:37 pm
we are both in the same IVA, so both in the same boat.
So annoying that it must remain throughtout the whole 6 yrs, its not fair
GottaGetThruThis
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by GottaGetThruThis » Thu Jan 04, 2018 4:57 pm
Lumart78 wrote:
we are both in the same IVA, so both in the same boat.
So annoying that it must remain throughtout the whole 6 yrs, its not fair


Were you not aware of this / didn't the IP ask before submitting your offer to MOC?

Foggy/Kallis/Lisa - Would the above ever constitute a missold IVA and/or grounds for its removal from a credit file?
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Foggy
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by Foggy » Thu Jan 04, 2018 5:09 pm
GottaGetThruThis wrote:
Lumart78 wrote:
we are both in the same IVA, so both in the same boat.
So annoying that it must remain throughtout the whole 6 yrs, its not fair


Were you not aware of this / didn't the IP ask before submitting your offer to MOC?

Foggy/Kallis/Lisa - Would the above ever constitute a missold IVA and/or grounds for its removal from a credit file?


What, exactly, do you refer to as possible grounds ? The fact that the IVA will trash credit records for 6 years ? The "fairness" ? As with most things, these are in the public domain and very little research will show them up. It is the responsibility of a debtor to make themselves aware of the ramifications of going into a debt solution .... the IP merely presents the possible choices and cannot delve into every possible scenario or doubt the debtor might have.
GottaGetThruThis
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by GottaGetThruThis » Thu Jan 04, 2018 5:23 pm
Foggy wrote:
What, exactly, do you refer to as possible grounds? The fact that the IVA will trash credit records for 6 years ? The "fairness" ? As with most things, these are in the public domain and very little research will show them up. It is the responsibility of a debtor to make themselves aware of the ramifications of going into a debt solution .... the IP merely presents the possible choices and cannot delve into every possible scenario or doubt the debtor might have.


I agree!
All financial instruments carry risk and require due diligence.
Was only checking re IVAs on the basis that a missold PPI can be refunded if someone is not made aware of the implications.
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Foggy
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by Foggy » Thu Jan 04, 2018 5:49 pm
GottaGetThruThis wrote:
Foggy wrote:
What, exactly, do you refer to as possible grounds? The fact that the IVA will trash credit records for 6 years ? The "fairness" ? As with most things, these are in the public domain and very little research will show them up. It is the responsibility of a debtor to make themselves aware of the ramifications of going into a debt solution .... the IP merely presents the possible choices and cannot delve into every possible scenario or doubt the debtor might have.


I agree!
All financial instruments carry risk and require due diligence.
Was only checking re IVAs on the basis that a missold PPI can be refunded if someone is not made aware of the implications.



Missold PPI is a different animal and claims of misselling is based on the fact that, in many cases, it wasn't actually needed or any claim would not have been entertained but was pushed as a condition of getting the loan granted. To claim a missold IVA I would imagine you would have to prove that you were actively miselad and the advisor made unwarranted and false promises. To be honest I would imagine that there are a few firms out there actually doing that, as well as a few more being very sketchy with information. This is one reason I am in favour of establishing some form of body offering mediation / resolution --- but it seems I am alone in this endeavour ( well -- only 21 others seem to support the idea). But, hey -- it was a long shot anyway.
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kallis3
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by kallis3 » Thu Jan 04, 2018 6:46 pm
OP would not be in the same IVA but probably interlocking so will still be constrained by the same rules.
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