Mortgage after iva

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najeeba
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by najeeba » Sat Sep 08, 2018 6:48 am
Hi,
Me and my husband are looking to buy a larger home for our growing family. My husband has recently completed an IVA arrangement in June 2018.
I work part time so have been really struggling to secure a mortgage amount that we need for a larger house. I have spoken with a broker initially who stated my husband would not be given a mortgage due to his IVA.
I have now started to look at help to buy scheme properties. Even though this is some what helpful I still would like my husband with me o n the mortgage and help to buy.
I do find the whole process unfair, my husband has maintained excellent payment record with his mortgage provider since the beginning and since the IVA has never defaulted on the payment agreement nor any issues with credit.
Surely there has to be a way around this....please help!
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kallis3
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by kallis3 » Sat Sep 08, 2018 8:27 am
His IVA will remain on his file for six years. Has he had his completion letter yet?

I would suggest you have a word with either Ryan or Shaun who are our mortgage experts on here and their details can be found under IVA experts page and see if they can help.
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najeeba
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by najeeba » Sat Sep 08, 2018 8:49 am
Hi

Yes we know it is on his file for next 6 years, we have checked his credit score on experian...approx 724 or similar.
We haven't had the completion statement come through yet.
I have emailed one of the experts you mentioned.
Thanks
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Foggy
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by Foggy » Sat Sep 08, 2018 8:57 am
Once the 6 years from the start of the IVA are finished he can clear up his credit file. Have a look here: https://www.iva.co.uk/what-does-an-iva- ... dit-record

Then I would suggest chatting to a whole of market broker with experience of adverse credit (like anything else, not all brokers are the same). We have two such on forum, both have been instrumental in securing mortgages with High Street lenders post IVA, as well as mortgages under the Help To Buy Scheme. Their details can be found in the links on their profiles:

Ryan: memberlist.php?mode=viewprofile&u=18488
Shaun: memberlist.php?mode=viewprofile&u=22837

Fairness is a two-edged sword, I am afraid, like all of us here, we have, at the end of the day, not been able to fully repay our debts and, after an arduous journey to make amends, have been forgiven and released from the debt burden. This does not, and should not, come without a price. Many go on to "normal" financial lives again after the 6 years or so: High Street Mortgages, new cars as well as the simple joy of being debt free: Owing nothing to no-one. That freedom, for me at least, was worth the price, indeed, it is priceless.
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najeeba
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by najeeba » Sat Sep 08, 2018 1:57 pm
Foggy,
Thanks for the information. Appreciate it.
All the best.
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luluj
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by luluj » Sat Sep 08, 2018 8:17 pm
Well done and let us know how you get on with Ryan / Shaun .....
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Ryan
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by Ryan » Mon Sep 10, 2018 7:29 am
Hi,

If the 6 years are up once the Completion certificate has been issued we have access to High Street Lenders who will look to lend normally including under the Help to Buy scheme.

Regards
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najeeba
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by najeeba » Mon Sep 10, 2018 1:17 pm
Hi Ryan
Thanks for your reply.
It has been 5 years in June 2018, IVA was ended and satifisfied as there was negative equity in our property. My husband has been told the completion statement will be sent out in Jan 2019.
Does that sound right?
If this is the case, then would we have to wait till the completion statement arrives before looking to apply for a mortgage?
Thanks
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Ryan
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by Ryan » Mon Sep 10, 2018 1:23 pm
Hi Najeeba,

In that case you'd be looking at June next year as being the point when we could look to obtain a 'normal' mortgage for you with a High Street Lender. If you looked to apply now/before the end of the 6th year you would require a minimum 25% deposit (possibly more depending on circumstances).

Regards
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Foggy
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by Foggy » Mon Sep 10, 2018 1:43 pm
Najeeba, the "standard" quote from companies for the issue of a completion certificate is 6 months --- however, only a few of the poorly performing firms take this long: Some take weeks, some take a few months. But, regardless, the credit files will still not clear until the 6th anniversary of the start of the IVA.
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