I entered an IVA in 2009, this was completed in 2014 and I received my Completion Certificate. Having checked and cleaned up my credit file, me and my new partner wish to buy a house. We will have a deposit of approx. 75K and in all honesty I assumed that my previous IVA history was dead and buried. However, a tentative appointment with a mortgage advisor yesterday proved that sleeping dogs aren't left to lie. The question was simple "Have you ever been declared bankrupt or entered into an IVA". I can't believe I'm being punished, for the global crisis in 2008 after being made redundant, 10 years on! Am I to assume that even though we have a huge deposit (which would mean for us a LTV of just 65%) we will end up getting screwed with a huge interest rate because of this? Any advice would be very welcome.
Have a word with Ryan and / or Shaun, both whole of market brokers with experience in adverse credit applications. As you surmise -- it all depends on how they ask that question and knowing who asks it in which way !
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I appreciate that. However, and this is the annoying part, I now have to find a non main-stream lender who will almost certainly not give me the good interest rates that the main-stream lenders offer people with 65% LTV mortgages. I feel like I'm being punished and seemingly always will be punished for something that happened out of my control, which has long since been sorted. So even 20 years from now, if I'm asked "Have you ever been in an IVA"? I will have to reply yes and will instantly have 3 or 4% added to the interest rates on any loan or mortgage.
Even convicted criminals are allowed to do their time and then move on. I don't see any "Have you ever been in prison"? questions, for example.
I really do appreciate you offering this, however, for now we have decided to put things on hold. This has come as a shock and me and my partner now need to consider all options. I didn't tell her about my IVA as it occured before I met her and once it was sorted presumed that would be the end of it. Obviously not. So after our meeting with the FA I had to "fess up". She's not happy at all
Once again thanks for your advice and indeed everyone else's advice.
Hi Warren. Sorry to hear that this has caused such an issue for you, I totally understand your frustration. The only re-assurance that I can provide is that, based on what you describe, you should not be penalised for the IVA and there's no reason that you shouldn't be considered for the same competitive rates as anyone else. On the positive side maybe it's best that everything is out in the open....after all you didn't murder anyone did you?
You're right, I didn't murder anyone. But I'm guessing if I did, and, did my time, I wouldn't have to answer the question on whether I did and wouldn't have any problems getting a main-stream lender to give me a mortgage at competitive rates
You don't have to worry.
A small number of high street lenders are not so IVA friendly, but for sure there are high street lenders that will treat you in the perfect/fair way that you were expecting.
*edited by Moderator -- please do not tout for business*