In Iva and looking at options as losing home

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Willduff
Willduff Posts: 1 Newbie
in IVA & DRO
Hi ive been in an iva (6 year to complete)since March 2017 and been allowed currently £700 to rent as we will lose our home with surrendering the property.
To no avail nothing suitable on the rental market,is that any back door way to put this £700 in buying a home rather than having to rent for the next 6 years
Have no rich family to buy a property and pay the rent

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  • Lioness_Twinkletoes
    Lioness_Twinkletoes Posts: 1,573 Forumite
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    Willduff wrote: »
    Hi ive been in an iva (6 year to complete)since March 2017 and been allowed currently £700 to rent as we will lose our home with surrendering the property.
    To no avail nothing suitable on the rental market,is that any back door way to put this £700 in buying a home rather than having to rent for the next 6 years
    Have no rich family to buy a property and pay the rent

    While you have an IVA (individual voluntary arrangement), there are rules over not taking out further credit, such as loans and credit cards. You'll need written permission from the insolvency practitioner (IP) supervising the arrangement before you can borrow any further money so unless you don't need a mortgage I'd say no...
  • Mermaid89
    Mermaid89 Posts: 107 Forumite
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    The likelihood of being approved for any kind of mortgage anyway whilst you are insolvent is nil.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Willduff and welcome to the forum


    Unfortunately as stated above there's almost no chance of you being able to obtain a mortgage while in an IVA. Aside from the reasons mentioned above you would also need a deposit, which unless you get help from friends or family, would not be possible while in an IVA.


    I would suggest you gather evidence that there are no suitable rental properties available for £700 per month and look at what budget you do require. Go back to your IP and ask them if they will reconsider the figure.


    If you are no longer going to be a home owner, it may also be worth considering what advantages there are to sticking with the IVA over going bankrupt. For example, do you have any other assets that would be at risk in bankruptcy? In terms of payments, you've got 5 years to go in the IVA whereas the longest you can be asked to make payments in bankruptcy is 3 years. I'd certainly recommend speaking to one of the free debt advice agencies about your best option.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • fatbelly
    fatbelly Posts: 20,492 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
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    Willduff wrote: »
    is that any back door way to put this £700 in buying a home rather than having to rent for the next 6 years

    No, not while you are in the IVA. Consider terminating .

    What's the story with the property surrender? Is there going to be a mortgage shortfall debt to add to your other debts?

    What will be your total debt?
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