how does and IVa affect my credit rating

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suzanne.h
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by suzanne.h » Sun Sep 02, 2007 6:45 pm
how does and IVa affect my credit rating

 

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gavin
Posts: 344
by gavin » Sun Sep 02, 2007 6:55 pm
Yes an IVA will affect your credit rating. It is a formal insolvency procedure and will appear on your credit reference file.

You should still be able to obtain a mortgage but the rate that you will be offered will be less competitive than if you were not subject to an IVA.

However if you successfully complete your IVA the record of it will not stay on your credit file forever, so it depends how long you were thinking of before applying for a mortgage (although some companies will specifically ask if you have been made bankrupt or entered into a formal agreement with your creditors in the past on the application).

Hope this helps



Empty pockets never held anyone back. Only empty heads and empty hearts can do that.[:o)]
Last edited by gavin on Sun Sep 02, 2007 7:05 pm, edited 1 time in total.

 

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Storm
Posts: 536
by Storm » Sun Sep 02, 2007 6:58 pm
Credit Report aside you will not be able to take any credit without the express permission of your IP for the duration of an IVA.

The fact you are in an IVA will be marked on your credit file and post IVA will be on your credit report for a period of 6 years from the start of your IVA.

You could find it difficult getting certain types of credit post IVA - is this a bad thing ???

You will be able to get a mortgage at slightly higher rates and will require a deposit of between 10-15% again subject to your IP's approval.

Was there any specific type of credit you were thinking of.

 

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mikebdomain
Posts: 1126
by mikebdomain » Mon Sep 03, 2007 8:43 am
The IVA will appear on your credit report and will be shown on Equifax and Experian reports as active and not failed (as long as it hasn't failed) As Storm has previously correctly stated it will stay on your credit file for six years.

When dealing with a mortgage broker who specialises in adverse credit an IVA will not have a massive adverse effect on a mortgage application as long as it (the IVA) has been carried out satisfactorily.


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