I am looking to get a help to buy mortgage, and in the process of saving for the deposit. I completed my IVA in September 17 (paid off early, so still shows on my credit file, but as satisfied), so am aware that I am ineligible currently.
However, some mortgage brokers I have spoken to have told me that 3 years after the completion date (so September 20), I may well be considered for a mortgage.
Does anyone have any experience in this, and is this correct? I am saving as hard as I possibly can, but I am 42 with a young family, so if I am going to purchase I need it to happen as soon as I possibly can, to make it a realistic investment.
Any advice would be greatly appreciated? Feel like I'm drowning at the moment, I worked so hard in order to get the IVA paid off early, but I am really struggling to see the benefit of that currently.
Thanks
Feel free to contact us to discuss your situation.
We have managed to obtain Help to Buy mortgages from High Street Lenders 6 years after the start date of an IVA. There is a specialist Lender who may lend on Help to Buy prior to that if you have 10% to put down.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Ok thankyou. You have answered my question to some degree though. I struggle to see the benefit of paying off my IVA early, if I still have to wait this time to access credit. At that point, I am going to be too old to consider a mortgage.
The Lenders sadly don't really understand an IVA and for them, whilst the defaults, etc remain on your credit report they will have an impact. High Street Lenders don't really take into account early settlement, many won't lend for at least 9 years from the start of an IVA and some will never lend following an IVA. Most Brokers on the High Street don't really come across IVAs very often so they don't tend to know who will look to lend when.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Ok, thanks. Makes sense.
However, I have looked at my credit report, it has no defaults, just a mention of the IVA having been settled in September 2017. Is that likely to make a difference?
When did your IVA begin? If you have changed address since the IVA started if you're doing an Experian report you need to provide a full 6 year address history to get a true full report.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
I haven't changed address since the IVA began, it began in 2016, and I completed with a lump sum payment in 2017. I have lived in the same property since 2011.
The Experian credit report shows "Voluntary Arrangement Complete" Satisfied September 2017.
All the other accounts on my report show settled, apart from my Credit builder credit card which is at 0 balance.
Wed May 22, 2019 7:44 amdaniel591 wrote:
Ok thankyou. You have answered my question to some degree though. I struggle to see the benefit of paying off my IVA early, if I still have to wait this time to access credit. At that point, I am going to be too old to consider a mortgage.
Ryan has dealt with the mortgage side -- as for the benefits of paying off early: One, which is a biggy, is getting the monkey off of your back --- you are not being constantly monitored. Two, all of you money is now your own -- you don't have to divvy up overtime, bonuses or pay rises to your creditors. Three, if you win the lottery or Great Aunt Matilda leaves you her mansion, it is ALL yours. And four, if your finances take a tumble or the boiler blows up, you no longer have the stress of keeping an IVA afloat while you also have to deal with the original problem.
Pre-IVA you were up to your eyeballs in debt --- you probably wouldn't, even now, been able to even consider a mortgage /save a deposit with the debt around your shoulders -- look on the bright side. You might be late to the party, but at least you are getting there.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Appreciate the words, and thanks.
At my age though, the thought of waiting another 4 years to even apply for a mortgage (also, I believe help to buy ends in 2023), is not a realistic proposition.
That on top of the miniscule pension statement I received recently really makes me feel I'm being punished for this for the rest of my life. I struggled with a debt management plan for 8 years, as I was determined to not go bankrupt. It is very difficult to see the upside at the moment.
So 2022 is when we could do under the Help to Buy with 5% deposit - the accounts showing settled should still have a default recorded against them. Worth also checking Equifax and Noddle/Callcredit if you haven't already.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Final question with help to buy. A few people I have spoken to have said that after 3 years I may be able to get a mortgage with a 10% deposit. My question for that is, is that 10% of the total value ie 200,000 = 20,0000 or is that 10% deposit of the mortgage amount, ignoring the equity loan amount?
Thanks
Ok, I appreciate your response. I'm sorry if I'm asking a lot of questions, but getting definitive answers for any of this is very tricky.
So just to confirm figure wise, if I was looking at help to buy on a £434k property, the deposit I would need is £43k?
