I did clear my IVA within two years after it started however my credit record is still very poor. My parents would like to give me some money to put down as a deposit for a house. However I have read so many reviews saying that banks would not lend money to people after IVA. Even though I cleared it apparently it will still be in my records for the next 5 years. I wonder if anyone knows what is the best way to tackle this, what do I need to do to increase me credit score and which lenders or brokers or bank I need to talk to. Many thanks.
Your score will remain low until the IVA and the defaults all drop off, then it will increase overnight. However, your score means very little to a lender, in fact, they don't even see it. It is merely an indicator for you to guage your credit worthiness against others. Potential lenders see you history --- what you have borrowed has been safely within your means and that you have paid back loans as agreed.
When your IVA drops off and those defaults, your credit history will be effectively blank and most lenders will have a guess at why, So, you need to do two things: 1) build up a history and 2) approach the right lenders.
Might I suggest a chat with Ryan and / or Shaun. They are two whole of market brokers who post on here and have helped many ex-IVA'ers get mortgages at "High Street Rates".
Their details can be gleaned from their member profiles:
From my experience I applied for a credit card with a low limit just to build my score up. The £800 became £41000 in less than 3 years. My credit score has gone through the roof in that time. I would say small steps.
Just to add a point. I have almost all of the amount available, the old me from 10 years ago would have booked a luxury all inclusive holiday with that credit, the me of today saves up for a budget trip with Ryanair with my own money..
