Completed IVA

kated_2

Completed an £127k IVA in Nov 2006. IVA started in Feb 2002 and raised £50k on house to pay off early - finally paid total of £80K.

Credit file is now clear and looks great. Tested my credit rating and looks like I could get any credit card/loan that I wanted to but DON'T EVER WANT CREDIT AGAIN. Still got a huge mortgage but don't see this as credit as I would have to pay rent otherwise. When the house prices rise I will sell up and buy something much smaller and cheaper.

IVA was a result of spend, spend, spend - no excuses - and I wish that I had known just how painful that huge debt would have been.

To anyone on the begining of the journey , good luck and if you need any advice please ask.

libby316

that's really good to hear- currently thinking about whether IVA or DMP is right way to go. I haven't really got any value in my house and an IVA sounds alot scarier then a DMP

thewad

Do the building society let you borrow more on your home than usual when they know your going down the IVA route.
I have about 100k equity in my house but surely they'll only lend the usual rates of whatever they are is it 3 x the mauin earner wage and 1 x the partners wage??

John

kated_2

No it was really difficult to even get lending up to 75% and because of the IVA only a few companies would even look at us so we ended up with an interest rate of 5.4% above base rate fixed for 3 years. We were just lucky that house prices really soared from 2005 to 2007 . If we hadn't been able to remortgage then we would have just had to carry on paying the IVA to completion.

kated_2

Sorry you were asking about multiples of income and no the lenders will not seem to lend any more just becasue you have an IVA

kated_2

Libby

The value of your house doesn't really matter as I think that with house prices as they are, very few people will suddenly see a large increase in the valueof their house and so will have to pay the IVA to completion.

I think that if you go with an IVA payments you have to really downsize your life for up to 6 years. In my case this was quite a relief as all those years of spending and the resulting debt problem was so horrible that I was quite pleased to never overspend again.

If you don't feel that you can be frugal for 6 years then bankruptcy might be for you.