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Summababy75
Summababy75 Posts: 1 Newbie
in Debt-free wannabe
Hi so my hubby entered an IVA in 2016. I have total debt including loans and credit cards totalling 31k. We have equity in our home. We are considering selling our home and clearing the IVA and my own debt, we would probably walk away with 80k for a deposit on a new property. My question is with the IVA and some late payment on our credit files, will we be able to find a lender for a new mortgage. I'm hesitant to sell and then have to rent for ever because we are unable to get a mortgage.

Any ideas??

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  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi there and welcome to MSE,


    The reality is that it is very difficult to answer that question for you. The IVA will have caused quite a lot of damage to your husbands credit file and would also be quite recent so that could make it harder to get a new mortgage. You would need to speak to an independent mortgage broker (potentially even before selling) to help you determine the likelihood of a new mortgage. (Be careful of fees).

    The other factor to consider is the terms and conditions of the IVA. There will be fees attached to the IVA that your husband may have to pay on top of the debt included in the IVA. He may have to repay the full amount of the debt and they may be able to seize more of his equity than you think under the 'windfall' clause of the IVA. You need to carefully read the contract before doing anything. Good luck,


    Laura
    @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
  • EssexHebridean
    EssexHebridean Posts: 21,372 Forumite
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    First stop is the MSE Credit Club for both of you - that will start to give you a picture of how you're viewed by lenders.

    You don't elaborate on your reasons for considering taking this step? Are you struggling to make payments currently? If so is there wiggle room in your budget to make savings?
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
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