hi there, my name is leigh, i dont have an I.V.A,

Get expert opinion. This is the place for new questions to be posted.
13 posts Page 1 of 1

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 1:45 pm
hi there, my name is leigh, i dont have an I.V.A, but fiancee does. need advice about what the future as for her with regards to her credit history. i have an mortgage, would like to buy a bigger house with my fiancee when the iva finishes. she as 21 months to go. am worried that i will get penalised by having to pay an higher interest rate becasue of the history she as, which i dont have anything to do with, is this the case, if so why, when i've been debt free? your advice is much appreciated. thank you

 

User avatar
kallis3
Forum Expert
Posts: 71959
Contact
by kallis3 » Sun Jan 17, 2010 2:19 pm
Hi Leigh and welcome to the forum.

Your fiancee's IVA will be on her record for six years from the date of IVA approval. She will then need to make sure that any defaults registered after the date of approval have been removed.

You shouldn't be penalised after everything has dropped off, but she is going to have to build up her credit rating again so it may be a few years before you can go for a joint mortgage.

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 2:43 pm
thanks for the reply kallis3, so basically in 21 months time, when last payment is made, get confirmation its finished, get credit report, check that the defaults are removed, build up her credit history again and then after that i can have a mortgage with her without any penalties!

is it worth my while to pay off the iva earlier for her, so can start that rebuilding process now? she owes just under £4500 - i havent got that, got about £3300 saved for a new car!

 

User avatar
Skippy
Posts: 20717
by Skippy » Sun Jan 17, 2010 2:45 pm
To be honest probably not - the IVA will stay on her credit file for 6 years from the date of the creditors meeting even if it's settled early.

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 2:49 pm
see am split on these things, granted they help people out of a mess, but on some sceneros it does nothing but hinder! thanks very much for your advice on that skippy. honda type r gt it is for me!

 

User avatar
MelanieGiles
Industry Expert
Posts: 47612
Contact
by MelanieGiles » Sun Jan 17, 2010 2:58 pm
Why don't you just take the mortgage out in your name initially, and then put your fiancee on it at a later date? If you need to include her earnings into the equation to get the level of mortgage needed, you may be able to include her contribution as rental income and still get the same level of loan.

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 3:03 pm
hi melanie, i currently have a mortgage now, but its joint with her dad, hes holding in a trust for his daughter. Problem is house isnt big enough, so need to move to a bigger one! when i go buy my next one i can add her at a later date, will they check her history then, would that go against me and the house?

 

User avatar
MelanieGiles
Industry Expert
Posts: 47612
Contact
by MelanieGiles » Sun Jan 17, 2010 3:07 pm
Why not see if Dad will agree to also stand in her shoes again, until her credit score has completely recovered. If you add her name to the mortgage at a later date, I do not think a huge amount of credit checking actually goes on to be frank, due to the joint and several nature of the liability.

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 3:14 pm
already thought of doing that, one little hick up though. his age. when i got the mortgage two years ago, the bank would only do a mortgage over 20years. i have landed a new well paid job, my fiancee as moved up into management and also on good money, so we want the next move to be the last one. we will be increasing the term of the mortgage to get the house we want to 25 years. makes her dad when we decide to move 80 years old when we finish paying! i'll be 30 when take out the next one so will finish at 55years old, hopefully i pay it off sooner!

 

User avatar
kallis3
Forum Expert
Posts: 71959
Contact
by kallis3 » Sun Jan 17, 2010 3:25 pm
You may be ok. One of my ex bosses took out a mortgage with his (then) partner who was a lot younger than him. I think his mortgage is probably due to end when he is in his 70's.

As long as the payments can be made, I can't see a problem.

 

User avatar
leighdavies147
Posts: 6
by leighdavies147 » Sun Jan 17, 2010 3:57 pm
hopefully, main thing here though is that this iva is completed and all the defaults are cleared, and then help build up her credit score again! I've heard tat you can pay like a £300 fee, and have aall the history wiped clean, and start afresh, got told this in a bank! is this right?

 

User avatar
kallis3
Forum Expert
Posts: 71959
Contact
by kallis3 » Sun Jan 17, 2010 4:01 pm
I've not heard of that one, but I very much doubt that it would happen. All credit history remains on your record for six years.

 

User avatar
MelanieGiles
Industry Expert
Posts: 47612
Contact
by MelanieGiles » Sun Jan 17, 2010 4:30 pm
I don't think that age is necessarily a factor in mortgages these days, so long as her Dad is able to show that he has an income.
13 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: Bing [Bot] and 31 guests