Quicker way to get a mortgage?

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susie451
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by susie451 » Fri Jan 11, 2019 11:48 pm
Hi
I have been in an Iva for 3years now and I have another 3years to go paying for it, I am in a better place than what I was in my 20’s and I’ve been renting for 10years I would love to own my own home and start my life again, my Iva is causing me issues to get a mortgage and lenders that do deal with ppl In Iva have to put at least 20-25% down instead of the usual 5-10%. If I cancelled my Iva and went to either a DMP company or did it myself paying my creditors would this give me a better chance of getting a mortgage as I really don’t want to wait another 9years mid 40’s to get my own home? Help require please
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luluj
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by luluj » Sat Jan 12, 2019 7:32 am
Sorry to say whilst your iva is ongoing and on your credit file (6 years from its start date) it will be almost impossible to get a mortgage.

You will be better off focusing on your iva, saving as much as you can from your allowances and making a plan for when the iva is done, certificate of closure is in your hand.

Our forum mortgage experts Ryan and Shaun will be better placed to advise you as to how to prepare and when the right time will be
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abbiesmum2003
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by abbiesmum2003 » Sat Jan 12, 2019 9:36 am
This should have been explained at the start of your IVA.
You will be extremely unlikely to be able to get a mortgage whe in an IVA. Very few if any lenders will touch you with iva in progress.
As Lulu said it would be best to concentrate on iva and getting that completed. If cancel it now your creditors could add on all the interest theyve frozen and you will be in a worse state...and still not be able to get a mortgage.
IVA will stay on your file for 6 years from date it started.
Do you have a family member who could help emd iva early with a F&F offer for remaining payments then you can save towards a deposit for a mortgage in a couple of years when it comes off your file?
Ending iva mid way by cancelling it, is not the best way forward (im hoping Foggy replies to you as well as he is great atthis sort of thing).
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kallis3
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by kallis3 » Sat Jan 12, 2019 9:40 am
Let your IVA run it's course - you will then be debt free. As luluj says, your credit rating will be shot for six years from the start and you will find creditors add on interest and charges and your debts will be higher.
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Foggy
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by Foggy » Sat Jan 12, 2019 9:56 am
Thank you, Abbiesmum --- I don't know about 'great' when all I can deliver is bad news.

It has all been basically said above: Cancelling the IVA now will allow creditors to add back lost interest and late payment charges, your original debts will then increase significantly. They will not be obliged to enter any arrangement with you. Any defaults already registered will still show on your credit file, as will the IVA itself, for 6 years from the start date and possible late payment markers for those accounts not in default.

As luluj says -- focus on getting everything straight now. Try to save a little or, as Abbiesmum says, maybe a family member can assist with a F&F offer to close the IVA successfully early -- but, even then, your choice of lender will be severely restricted -- but you would be able to save more towards a deposit.

In this day and age mid-40's is not an uncommon age for people to get onto the property ladder, nor was it before the so-called "Boom Years" of the 70's & 80's and the birth of the Yuppy. At least you, unlike many of your peers, will be able to go into home ownership debt free, rather than juggling mortgage repayments with credit card bills and the rest !
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abbiesmum2003
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by abbiesmum2003 » Sat Jan 12, 2019 9:59 am
haha! Sorry Foggy!!!
Ok ‘great’ perhaps not the best word but you explain the bad news well!!!!
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susie451
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by susie451 » Sun Jan 13, 2019 8:24 am
Thanks all for your advice, it’s very upsetting that you feel trapped for years and you can’t move on with your life as your stuck in an Iva. The company I’m with aren’t the best coming back to you when your asking questions, there quick enough to hammer you for more money each month but when your looking for advice they don’t want to know, will have more issues once completed this Iva also as it will stay on my credit file?
Thanks Susie
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abbiesmum2003
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by abbiesmum2003 » Sun Jan 13, 2019 9:17 am
Sorry you feel that way.
But if you hadnt started an IVA and had lots of unmanageable debt you still would be trapped (without a way out) and still wouldnt get a mortgage.
I know you cant see it right now but the iva is a way out to a better debt free life.
Why are you hammered for more money each month? This shouldonly happen if you earn over your regular earnings each month and even then you should be able to leep a proportion of it.
You arent trapped as such. Your finances are controlled and monitored and to be fair that is right. We have all spent what we canr afford to pay back so the iva helps to control spending and the iva payment should only be whats left after your essential allowances have been deducted.
We have completed our iva. We have managed to raise 3 children (including one born while in iva). Thats alot of birthdays, christmases, holidays,school trips etc. We have felt frustrated at times but the bigger picture is we are now debt free. IVA will fall off records in April this year and then we can start rebuilding.
Perhaps you need to read posts on forum to fully understand what you signed up for, issues that crop up in an iva and read the paperwork which you have signed. An iva is not easy. Its not a simple/quick way out. But it works if you live within the guidelines. Sorry you feel trapped and want to move on etc but you cant just yet. Concentrate on the iva and what you need to pay and why. Ending it now will open you up to unprotected hassle/demands from creditors, fees and interest all added back on, and no promise they will agree to another debt management plan.
The forum is full of people who have iva’s or completed one. Its a helpful, knowledgable and experienced place and usually someone whos experienced same as you have. Keep posting if we can help.
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kallis3
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by kallis3 » Sun Jan 13, 2019 9:22 am
I echo Abbiesmum - why are you having to pay extra money each month?
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susie451
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by susie451 » Sun Jan 13, 2019 12:10 pm
Hi
I wasn’t actually happy to go in an Iva my ex husband was meant to pay for our mortgage at the time I paid the rest of the bills I came home from work to find a letter from building society how much we owed I went threw the roof as he hadn’t spoken to me about it I tried to get them to put it all in my name and they said they’d spoken to my ex husband and it’s too late, trust was the key here and I’d was destroyed. I was in a DMP once we left the house and my DMP company were closing and moved my records to this company now, also at time I was moving 90miles away with my new partner so my head was a little out of sorts and I didn’t have time to sort this out they threw me into an Iva which sounded good at the time, I’m the only one paying for this not my ex husband so his got away scotch free and I’m the one stuck with it all if only they said how it would affect my credit file I would of thought twice as there was nothing wrong with my DMP company. They phone me asking if I can pay more than what I do already and tbh I pay a reasonable price to them each month, this is why I’m cheesed as I am ready to move on and I can’t unlike my ex husband who had started a new family :(
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Foggy
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by Foggy » Sun Jan 13, 2019 12:15 pm
susie451 wrote:
Hi
I wasn’t actually happy to go in an Iva my ex husband was meant to pay for our mortgage at the time I paid the rest of the bills I came home from work to find a letter from building society how much we owed I went threw the roof as he hadn’t spoken to me about it I tried to get them to put it all in my name and they said they’d spoken to my ex husband and it’s too late, trust was the key here and I’d was destroyed. I was in a DMP once we left the house and my DMP company were closing and moved my records to this company now, also at time I was moving 90miles away with my new partner so my head was a little out of sorts and I didn’t have time to sort this out they threw me into an Iva which sounded good at the time, I’m the only one paying for this not my ex husband so his got away scotch free and I’m the one stuck with it all if only they said how it would affect my credit file I would of thought twice as there was nothing wrong with my DMP company. They phone me asking if I can pay more than what I do already and tbh I pay a reasonable price to them each month, this is why I’m cheesed as I am ready to move on and I can’t unlike my ex husband who had started a new family :(


This doesn't sound right -- unless, as mentioned before, you are earning more (overtime, bonus payments etc). Might I ask who you are with ?
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susie451
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by susie451 » Sun Jan 13, 2019 12:44 pm
Hi foggy
A company called Begbies Traynor Group, they’ve not been helpful in anyway since I started this up, it was originally through Invocas but then Begbies took over I was paying every month DD they at Begbies couldn’t see my payments and I had to send them screen shots of my payments I was extremely cheesed off with this as my debt is meant to be with trustworthy people and they couldn’t see my payments that disgusted me it’s correct now obviously cause I’ve paid each month in my eyes there crap and yes they do ask if I can pay more too
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abbiesmum2003
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by abbiesmum2003 » Sun Jan 13, 2019 4:32 pm
Oh wow. No wonder youre confused and unsure what you can/cant do.
As youve found out an IVA is legally binding and restrictive on your finances.
Are all the debts in your name? Is Ex husband included on anything?
The company should complete annual reviees of your income and outgoings to decide on your monthly payment figure. There are certain allowances you are entitled too (depending on size of family) which are deducted from your income. The remainder is what becomes your iva payment.
They have no right to ask for more each month unless you earn more than the declared income (eg overtime).
Ive never heardof the company you say you are with so cant comment on how they manage things.
Have you looked on the IVA register to see if you are listed as that might give details about when IVA officially started and who is managing it.
It sounds like youve got a bit of detective work to do and a bit of sorting out to do. Sorry you have been left with this. Sadly you would probably be in an even worst situation if quit iva though so perhaps best to figure out whats going on and make best of it.
Register with clearscore (its free) which will show you your a brief credit report. Might be helpful.
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susie451
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by susie451 » Sun Jan 13, 2019 6:19 pm
Hi Abby
My ex husband and I have one joint debt which his paying nothing towards its all me which is crap as his got away with it on my eyes, most of my other debts were mine that I’ve nearly all paid off when you check my credit report. What’s the Iva list never heard of that will tell you anything about the debts etc as I’ve asked my Iva company to send me statements of my creditors and what I’ve got left to pay I asked several times last week and they seem to be ignoring me, I’m not happy now I’m in a better place that I was sort of pushed into this and they’ve not been very good what so ever.
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abbiesmum2003
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by abbiesmum2003 » Sun Jan 13, 2019 6:34 pm
If you have an IVA you will be on the register.
If you search on Google for ‘IVA register’ it should come up.
I dont know what you mean about look like nearly paid off according to credit report.
Rarely do IVA companies send reports of debts. We got an annual statement of what was paid to who. your monthly payment goes into a pot which is then shared between creditors depending on what percentage of the total debt they hold. keeps it fair.
Surely if joint debt ex hubby should be paying his share of it but as
i was in joint (interlocking) iva with my husband im not sure about that bit.

When started an IVA you would have had a meeting of creditors and a plan of payments agreed based on your income and disposable income. It sounds like you havemt gone through a proper informed discussion and agreement amd arent really sure what the process/journey involves.
Not really sure what else to suggest besides keeping on at the company your IVA is apparently with.
Do you have any paperwork with iva terms and conditions or clauses on? Any details about your budget and how the payment has been worked out?
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