Hello, I did a lump sum IVA in April 2019. My husband and I are most likely separating. We have two young children so I was asking to stay in the family home for a maximum of 4 years - basically until our youngest started school. I would have been able to pay the full mortgage, and then sell and split equity 50/50. He wants to make a clean break, sell the family home. I would have about 25-30k from the sale if we do what he wants. Is there any chance in trying to get a mortgage with this as a deposit, or would I still be liable to pay my creditors something from the sale, even if, as it was a lump sum the IVA is classed as completed? Just want to make sure I am understanding everything correctly. Thank you very much.
Assuming the IVA was formally concluded and you had the completion paperwork the IVA or past creditors will have no call on the equity released from a future sale.
I would advise you to get some legal advice as his 'wanting a clean break' may not be what a court decides is the best for you and the children --- unless, of course, you are content to meet his terms.
As for getting a new mortgage, I think at least 10% deposit will be needed. Not forgetting fees etc. which would eat into the equity you get. Unfortunately the IVA will be sitting on your credit files until 2025 and will limit the choice of lender and the rates you get and a specialised broker would be the person to speak to right now to check options.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Whilst the IVA still shows on your credit file, at this time you would need a 30% deposit to but a home.
As Foggy says, you really should get some legal advice.
Being honest, if you do not want to move out, there is no court in the land that would make you, so stay put if i was you until the IVA is off your credit file, then start your new life again when the IVA is in the past.
IVA Mortgage Expert
Zebra Money Centre
I'm afraid to say that the fact that your IVA is so recent is likely to deter any lenders at present, certainly in the absence of a significantly bigger deposit. Even then you would be looking at less than competitive rates. I appreciate that your husband was hoping for a clean break but I'm afraid, at least in the relatively short-term that isn't likely to be possible as far as the house is concerned unless you sold and rented for a period. Best of luck in what is bound to be a fairly traumatic time for you.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.