Can i get mortgage while in IVA?

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craig520
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by craig520 » Thu May 18, 2017 4:03 pm
My partner and I were looking at moving house, however, the estate agents state that as I have only had my IVA for 1 year I cannot get a mortgage for 6 years. Is this correct? My growing family are struggling for space in the current house we own and cannot wait 6 years to move. We also don't want to move into rented housing as we believe this is a step backwards and not forwards. Hope you can give us some advice on this. Thanks.
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kallis3
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by kallis3 » Thu May 18, 2017 4:08 pm
Hi,

You are not going to be able to get an mortgage whilst in an IVA, sorry.
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craig520
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by craig520 » Thu May 18, 2017 4:12 pm
kallis3 wrote:
Hi,

You are not going to be able to get an mortgage whilst in an IVA, sorry.


Thank you for the quick response. It's a shame this wasn't explained when taking the IVA out :(
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Ryan
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by Ryan » Thu May 18, 2017 4:16 pm
Unfortunately IVAs have a very long term impact on Mortgages. Some Lenders will lend 6 years after the IVA began however most will want a longer period of time to have elapsed before they would consider lending.
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Foggy
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by Foggy » Thu May 18, 2017 4:18 pm
The IVA is, effectively, declaring yourself insolvent -- this, naturally, destroys your credit rating -- so lenders will not consider you until your rating improves ( 6 years from the start of the IVA). Even then, they have differing criteria ... some will want to wait another 3 - 6 years, some will consider you straight awat and some will never lend to you! When the time comes the services of a good broker, such as Ryan and Shaun ( who both post on forum), will be invaluable.
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craig520
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by craig520 » Thu May 18, 2017 4:22 pm
I will be definitely seeking the help and advice when the time comes. In a very long time :lol:
2 young children, 2 crazy dogs and ourselves in a 2 bedroom house is definitely not ideal!
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kallis3
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by kallis3 » Thu May 18, 2017 4:56 pm
You can always look at renting in the meantime.
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craig520
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by craig520 » Thu May 18, 2017 5:06 pm
kallis3 wrote:
You can always look at renting in the meantime.


The only issue with that is trying to find someone willing to rent with 2 large American bulldogs lol.
The situation is made worse as my partner has found the house of her dreams within our budget.. typical.
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Shaun Vickery
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by Shaun Vickery » Fri May 19, 2017 9:17 am
I agree with previous posters. I'm afraid that obtaining a mortgage whilst you are in an IVA wouldn't be a realistic possibility in today's market. I hope you manage to sort something out, renting might be your best option albeit I appreciate it isn't your ideal or preferred option.
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