Hi, I am about two years into my IVA with FWG, which I pay in £90/mth into. My Mum recently sold her house and has moved abroad, from this sale she finds herself in a position to buy me out of my IVA. She would also like to help get me on the property ladder if possible. I want to find out the likelihood of being able to find a mortgage if successful in ending my IVA early. There are far too many factors to outline here, but is there anyone who specialises in mortgage brokerage for those with poor credit?
We do have two mortgage experts on here but I'm afraid your chances of getting a mortgage whilst your IVA still shows on your record are virtually nil. It will show for the full six years even if you finish early.
Your mum would need to make sure she told the IP any money is only available for a full and final offer on your IVA. As to helping you on the property ladder she could money aside in an account that will only be accessed once your credit record is good.
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
We have two brokers on the forum who specialize in adverse credit. Buying while the IVA is on your credit records will limit your choice of lenders severely and your interest rate will be higher, but you can always refinance when things are looking rosier. Your credit files will not clear until the 6th anniversary of the start of the IVA regardless of ending early.
Ryan and Shaun can be contacted via the details in their profiles here:
Never say never. We did just this in our iva due to inheritance. The key is having to wait till you have the completion certificate and then having a good deposit and potentially being prepared to accept higher interest rate for the balance of time ...
Our experts have supported lots of forum members over the years and am sure Ryan and or Shaun will be able to offer specific advice.
I can personally vouch for Ryan and his team who have helped us for over 10 years now.
Good luck
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks for your suggestions. I will be in touch with Ryan and Shaun. I understand that it is unlikely. I just wanted to check that it is worth trying before I propose a F&F settlement. I will press ahead with that anyway as it will give me the freedom to start improving my credit score.
Even if you do a full and final, your IVA will still show for the full six years from the start so you are unlikely to be able to build up a decent credit score before then.
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
It should be possible for a specialist Mortgage Adviser to give you a good indication as to whether a mortgage could be achieved presuming that the Full and Final has been dealt with but your options will remain fairly limited all the same. Might be worth just focusing on sorting the IVA first anyway though.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Thanks for the advice everyone. I have made contact with Shaun and Ryan’s companies, both felt a mortgage is possible but with a higher deposit of around 30%, this would go down year on year after the IVA is settled (currently a long way out of reach). I am proceeding with the F & F settlement following advice from Financial Wellness as I feel I would benefit from the freedom it may offer.
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
