Mortgage (for new buyer) after an IVA

danielanthony

I did say getting your credit file sorted out was a hassle didn't I?

Doglover

I can't remeber the exact date it started but it'll be the 4th anniversary sometime this Sept/Oct. There is a slim chance we may be in a position to settle early but because the chance is so slim we aren't really making plans on that basis. The iva was a straight forward 5 year plan with no equity release clause etc. Presumably the iva should (in theory) drop off the credit file in Sept/Oct of 2011? However, as from Oct 2010 the iva should be on the credit file marked as satisfied?

If we get a copy of the credit file now we can make sure that there are no defaults recorded pre April 2003 and the only ones that should be on there now are the iva claims - is that right?

Barclays were one of the creditors so I imagine they'd steer clear! Did you bank with them before, during or after the IVA or simply just apply for a card?

Thanks for letting me continue to pick your brain.

danielanthony

Correct, you're looking at Sept/Oct 2011 before the defaults come off and from Sept/Oct 2010 once the IVA is completed the defaults should be marked as satisfied.

One thing, I never saw any mention of an IVA on either of my credit files, it has sections for bankrupt and CCJ information but nothing stating I had an IVA. So it was 'simply' a case of correcting the creditors information. Also on mortgage applications I have had to state that I had an IVA in May 2003, but as it was so long ago I am sure, as was our mortgage advisor, that it is because the defaults are still on my file that we were originally rejected.

If you get access to your credit file there should be no default dates later than Sept/Oct 2005 based on your statement that your IVA will have its 4th anniversary in Sept/Oct this year.

I didn't bank with Barclays before but the card is specifically for those with poor credit histories, I think CAPITALONE have a similar bad-credit card, extortionate interest rate and low credit amount but that is to be expected.

I wouldn't try to end the IVA early unless there was a significant change in circumstances coming up, as I think I've explained, I dont think ending it early will increase your chances of getting a mortgage, sorry

Dan

danielanthony

Plus you cant apply form more credit without your IP's consent, so I only got my card in June 2008 when I didn't have to report to anyone

Doglover

We certainly have no intention of paying off early but we may end in a forced position in that regard. We'll deal with that if the situation arises.

Thanks so much for you advice. I will get his credit report now to make sure it's up to date and the default date for the iva is correct. I will also endeavour to get him to get some credit to start re-building his credit score. Then once the iva is completed i will get up to date access to the credit file to make sure that the iva drops exactly a year later.

If you can face posting it, I'd be really pleased to hear how your next mortgage app goes in May and any feedback you get from the mortgage company. I'll have my fingers crossed for you.

danielanthony

No problems, I will let you know how it goes! Roll on 28/05/09...

danielanthony

UPDATE:

I GOT OFFERED A MORTGAGE WITH HALIFAX!

Offering £230,000 @ 6.99% with 90% LTV, got this through our broker. I know this isn't the best deal about but its mainstream, a lot of money, and satisfying after being unable to get credit for the past six years!

We're thinking about applying direct to HSBC as they have a 4.99% deal with 90% LTV, if Halifax have accepted me then surely HSBC will..? The 2% difference will save £250pm. Will find out this weekend I suppose, but either way, I've got a mortgage and wont have to rent for much longer

Doglover

:j Well done and thank you so much for posting the update. That's brilliant news and gives the rest of us hope that things can work out if you are prepared to work hard enough for it.

Once you've moved into your new home please update again.

Once again, a massive thumbs up and happy house hunting!! :T

talkalot

danielanthony wrote: »

UPDATE:

I GOT OFFERED A MORTGAGE WITH HALIFAX!

Offering £230,000 @ 6.99% with 90% LTV, got this through our broker. I know this isn't the best deal about but its mainstream, a lot of money, and satisfying after being unable to get credit for the past six years!

We're thinking about applying direct to HSBC as they have a 4.99% deal with 90% LTV, if Halifax have accepted me then surely HSBC will..? The 2% difference will save £250pm. Will find out this weekend I suppose, but either way, I've got a mortgage and wont have to rent for much longer

I completed a F&F IVA in February last year. None of the main steam banks wanted to touch me for at least 3 years apart from HSBC. All they wanted was for my IVA to have been completed at least 1 year. They dont deal with brokers but I would give them a try.