Family homeless with an IVA

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William
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by William » Wed May 03, 2017 5:55 pm
Hello
I'd like to ask what options there are having an IVA but also having nowhere to live.
For the moment, everything is okay but in the next few months this will change - and there's a family involved.
A mortgage would be the ideal but renting somewhere is fine. Preferably avoiding a council house - but what choices are there?
Your help would be very much appreciated. Has anyone else been in a similar situation?
Thanks
William
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luluj
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by luluj » Wed May 03, 2017 7:43 pm
Sorry to be the bearer of bad news ....

Moving home whilst in an iva can be challenging as to rent through a letting agent will require being credit checked and possible need to provide guarantors etc. If you can find a private landlord it would be more beneficial to you as they may not be as stringent with their checks.
Getting a mortgage whilst in an iva is nigh on impossible whilst it remains of your credit record.
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kallis3
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by kallis3 » Wed May 03, 2017 8:13 pm
I agree with luluj - you won't get a mortgage and may struggle to rent. Is there any reason you won't consider council housing?
William
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by William » Wed May 03, 2017 10:14 pm
Thanks for your thoughts, i really appreciate it.

Could you give me an idea of how hard each of the options is? Is a mortgage really out of the question? From what i've read they'd want a ridiculously high deposit.
Do you know if there are many private landlords that don't do credit checks? Wouldn't they need a guarantor or something instead?

And a key question, when the IVA ends, how much better will my chances be for either of the above options?

Council housing would be a last resort as it would feel like such a personal failure. After losing the business too, it would be a struggle to fall back so far. What do people do in these circumstances?

Thanks again for your help.
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luluj
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by luluj » Thu May 04, 2017 4:16 am
You can speak to Ryan or Shaun our mortgage experts on the forum - mortgages whilst in an iva are very hard to come by but everyones circunstances differ so take some professional advice.
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Regarding private landlords - this varies depending on the area you live in and contacts you have personally - you may have friends or own other properties that may help you out.
We moved into rented at the outset of our iva and we had to pay 6 months rent upfront to show we were able to pay. We also had to name a guarantor .. my mum.

I understand your reasoning for not approaching the council or housing associations- but you need to do what is necessary for your family - you are not alone in being in this situation and the fact you are doing something to resolve your debt you should be proud of this !
redboxtree
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by redboxtree » Thu May 04, 2017 7:44 am
If a landlord uses the Letting Hub you will be unlikely to get past the basic checks.

If you have not yet gone into an IVA it is better if you do it now rather than after.

As luluj says this is about doing what is right for your family - unfortunately our pride has a lot of impact when deciding whether to go into an IVA or not or when to do it.
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Michael Peoples
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by Michael Peoples » Thu May 04, 2017 12:22 pm
I would think that the family should resolve their housing issues first if at all possible and then look at an IVA. They could make token payments for a couple of monbths as this would cause less damage to their credit file than a full IVA.
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Foggy
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by Foggy » Thu May 04, 2017 6:37 pm
All good advice above. However, if you get into rented before the IVA, you will run into this wall at the end of the tenancy ( 6 months time). Many private landlords do not credit check, but will ask for a sizeable deposit / advance rent.

Viability of a mortgage, if you are not in a position to secure one now -- you will never get one after entering an IVA --- credit checks apart you would have to convince your IP and creditors -- which is unlikely.

Council housing --- no where near the stigma it once was ... secure .. and cheaper than market rents, with the ability ( at the moment) to purchase in a few years time when your position improves ---- by no means a sign of failure and certainly less of a failure than living under the local flyover !!
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Lisa Thomas
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by Lisa Thomas » Mon May 08, 2017 2:34 pm
Hi

Are you actually in an IVA yet or just considering options at this stage?
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