Additional Borrowing after IVA

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by Markdn12 » Mon May 22, 2017 1:56 pm
Hi all,

I'll give you a quick background before I pose my question, I completed a lump sum IVA in December 2015, started to rebuild my credit history and have a Vanquis card with £2000 limit, not that I need that much but comes in handy. I've recently been sent a letter from the management company that looks after the lease for the block of flats where I own a property and they are wanting to fix the roof with the cost being passed on to the owners, this could easily be £6,000 or more for my portion. As my IVA will still be on my credit file I'm wondering what my options would be to get the funding for this as the management company are keen to get started as there are leaks in certain areas of the block.

I've started to look in to getting additional funding through my mortgage company Halifax, but I imagine adding more on to my existing mortgage will be turned down when they begin credit checks, would there be much point in pursuing this? I was advised that this could be the best way to get funds from the management company pursuing the works as they said the mortgage company would have a vested interest in keeping the property well maintained. Would adding a second mortgage be easier as it's secured debt so maybe more chance of being accepted in spite of my poor credit rating because if I don't pay they can take my flat. Would I still be able to get one via the same mortgage company or would I only be able to get one with a specialist lender? I would probably need to borrow £8,000-10,000 to cover myself against any extra costs. I don't fancy going down the payday loan company way with sky high interest as the amount I'll pay back will be crazy, plus I'm planning to sell my property soon so don't want my credit file messing up too much as I want to get back on the housing ladder as soon as I can

I wouldn't likely get any unsecured credit, credits cards, loans etc would be turned down straight away. Can anyone else think of a way to fund this? I don't think I could borrow that amount from any of my relatives. Shame this has all come out of the blue as I was doing so well to recover from my IVA now I need to borrow more.

Thanks in advance.
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by Ryan » Mon May 22, 2017 2:30 pm
Hi Mark,

It would depend on a number of factors, income, equity available in the property, etc. We'd be happy to take a look at your situation if you were to contact us.

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by Foggy » Mon May 22, 2017 2:53 pm
Both Ryan and Shaun, who post on the forum, are whole of market brokers with experience with adverse credit applications -- well worth a chat.
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by Michelled0422 » Mon May 22, 2017 4:34 pm
When I owned a flat in shared premises, I paid a monthly management fee (or named something similar) along with everyone else and this money was put into a central pot to cover the building insurance, repair & maintenance & cleaning of the internal & external communal areas. Do you pay something similar which would also cover roof repairs?
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by Markdn12 » Mon May 22, 2017 5:04 pm
Called Halifax who are unable to offer any additional funds do to the IVA.

Ryan - If I understand correctly you offer adverse credit mortgages, are you able to also offer small loans? If not then I assume any help you can offer would involve getting a mortgage for the whole amount covering my existing mortgage (£48K) and the additional £10K needed to cover the roof repairs rather than simply adding a further £10K of secured debt alongside my existing mortgage? Not sure if that would be the best route as not only would there be setup fees I imagine the new mortgage rate wouldn't be as good (currently 3.75% with Halifax).

Michelled0422 - We have the same thing here, our service charges cover the routine maintenance of the block and extra is put into a sink fund, however this sink fund has around £15K in at the moment and the total cost of the roof work is coming in at around £200K which is why the owners are being asked to make up the difference. Unfortunately as the roof is leaking in areas it's a job that needs doing so they've sent out a section 20 notice to legally start the work, I'm just a little worried as to where I'm going to find this kind of money from with only being discharged from my IVA in December 2015 but as it was a short IVA it will remain on my credit file till 2021.
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by Shaun Vickery » Mon May 22, 2017 5:10 pm
It may be possible to raise the funds you need with a separate loan. Whether this is the best way of doing it will of course depend on your own individual circumstances.
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