Getting a mortgage post IVA

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julie166
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by julie166 » Mon Feb 05, 2018 3:57 pm
I've been in an IVA for 6 months. I know I'm getting ahead of myself but I've been looking into being to get a mortgage when I complete.

I'm planning to open the help to buy ISA before times runs out next year. My question is, which lenders are more likely to approve a mortgage as I'd rather open the ISA with one of those rather than a lender I have no chance with.

By the time I complete and my credit history is clear our joint income would be between 55-60k per year. The deposit will hopefully be 24k plus the 6k available from the scheme would take it to 30k and I'd be looking at a purchase price of 180k if that helps. Getting into this mess and the IVA has made me determined to plan for retirement and not be paying rent in my old age. Thanks.
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Foggy
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by Foggy » Mon Feb 05, 2018 4:06 pm
Lenders change attitude and criteria more often than a 6 month old changes nappies! It would be impossible (and a little irresponsible) to predict what the market might be like in 5 years time! Additionally, if you manage to accumulate an ISA balance of any magnitude whilst in the IVA creditors might look on it as an asset or at least reduce your allowances to compensate.

Have a chat to Ryan and / or Shaun --- details can be found here -- they are in yellow, towards the bottom of the list : memberlist.php?mode=team

Both are whole of market brokers with experience in adverse credit.
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julie166
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by julie166 » Mon Feb 05, 2018 4:13 pm
Thanks. My partner doesn'thave an IVA so his ISA will be separate. I was planning on paying my emergency allowance into mine and any wage rises and then my IVA funds for 2 years after I complete.

I just don't see the point in saving with someone who will say no when I could save with someone with a track record of approving post IVA mortgages.
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Ryan
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by Ryan » Mon Feb 05, 2018 4:22 pm
Hi Julie,

As Foggy says it is impossible to know who may be looking to lend in 5 1/2 years time. There are very few Lenders currently who will look to lend straight after an IVA hopefully there may be more in the future.

Regards
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julie166
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by julie166 » Mon Feb 05, 2018 4:24 pm
Thanks for the reply Ryan, so basically just pick one to save with then?
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Ryan
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by Ryan » Mon Feb 05, 2018 4:36 pm
If you have a good relationship with a Bank then that may be a good start or alternatively others prefer to use a Building Society as they are essentially 'owned' by their Members.

Regards
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julie166
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by julie166 » Mon Feb 05, 2018 5:02 pm
Thanks for the replies. I've been with Santander for years and have no credit with them but their criteria says no IVAs so I'll go with Yorkshire building society. Thanks for taking the time to answer.
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luluj
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by luluj » Tue Feb 06, 2018 3:22 am
Great to have a goal to strive towards - the iva will soon be yesterdays news; in between all you can do is save what you can from allowances any wage increases that you see - don't forget any changes of income needs to be declared to IP at the annual review - if not monthly depending on your agreement.
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julie166
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by julie166 » Tue Feb 06, 2018 6:48 am
luluj wrote:
Great to have a goal to strive towards - the iva will soon be yesterdays news; in between all you can do is save what you can from allowances any wage increases that you see - don't forget any changes of income needs to be declared to IP at the annual review - if not monthly depending on your agreement.


Thanks luluj

I'm trying to focus on getting out of this situation and making sure I'm not in it again. Thanks for replying.
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