I had lots of helpful advice during my IVA and help with my Full and Final offer that I thought I would come back and pick your brains for mortgage advice. I'm trying to make sure i have everything prepared and in order for when i can start the process.
Not only do I have an IVA on my credit file but shortly after completing my IVA I become self employed with a limited company and it's done very well.
A few questions, my IVA was paid off in Full in November 2016. It started July 2012, so drops off my credit file in July this year.
I've got a vanquish credit card and have been paying it off in full each month, my Experian credit score is now up to Fair / 803. So it has improved.
What adds further complication to any mortgage application will be that my income is from dividends and a basic salary from my limited company. My wife is also paid monthly dividends.
My tax return didn't show that much compared to what I'm earning now, as the company was rather new. Would a mortgage be based on last years earning or more recent earnings? I could show bank statements from the company and personal statements?
How many months bank statements would be required, just so i can start getting prepared and be ready when my IVA drops off in July.
Would it be possible for my accountant to also vouch for more recent earnings? My second year accounts wont be done till November and I'm hoping we can obtain a mortgage in august / September time.
Deposit amount, I'm aiming for a 20% deposit, will this be enough and help?
Mortgage amount, any idea what it would be based on, so if they do take most recent dividend payments into account, would it maybe be a max of X4? For the cost of properties I would like I would need x2 based on the recent (2018's) Dividend payments on top of what i hope will be a 20% deposit.
Mortgage payments would be less than what we are currently paying for rent, is that taken into account?
I plan to contact Zebra brokers once my IVA has dropped off, just trying to get an understanding of whats needed and whats required now so that I can be fully prepared.
Also would it be worth while getting a second credit card from a different company to pay off in full each month? I have a £1000 limit on my Vanquish and spend about £100 per month on it. One of the negative factors on my Experian report is that I only have a max of £1000 credit limit.
Thanks in advance!
Foggy wrote:I would contact Ryan at Zebra sooner, rather than later, which will give you time to get your ducks in a row. My credit score improved once I had other "High Street" credit cards, other than the Vanquis, which had to wait until the IVA dropped off.
I did speak to them previously and was told to call back once the IVA has dropped off. I didn't think they would really want to answer any of my questions until then! Hence posting them here!
I'm thinking it may be worth applying for another credit card if it would help boost my score in time for August / September.
As Foggy has said it's best to obtain all 3 credit reports if you haven't already done so to make sure that all defaults on the rpeorts have the IVA start date on them. We will be happy to check the reports for you and advise on possible borrowing potential however most Lenders these days will work off your most recent tax returns when assessing your income rather than bank statements, etc.
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