F/F IVA done 4 years ago...Remortgage needed next dec...Help

amberrose_2

Hi all...

We did a full and final IVA 4 years ago....since then we have no further credit...no overdraft...no debts...just our mortgage.

We had to do a remortgage 2 years ago as the fixed rate we were in was up and we had a right job getting a new one...we went through a brokers who advised us to go for a interest only to keep the monthly payments down (basically saying that by the time this new interest only mortgage fixed rate is up we will have been 5 years ex IVA's and would be able to get a better rate mortgage)

So we did this and in dec next year it will be up...so we will have to remortgage again...so we will have been 5 years ex IVA's and have never missed or been late with any mortgage payments....what i am worried about though its that obviously we haven't been paying anything off the actual loan for 3 years and house prices have come down....so we don't have alot of equity in the house.....its worth about £140'000 and we would need £119'000 to repay the old mortgage.

We are on a 6.65 rate ... currently at 25 yrs ... £660 per month

We would like a lower rate.....knock 5 years off....and can afford £800 per month

Am i totally cookoo to think this could happen...? are we going to be faced with the usual headache of going through what feels like the !!!!! to get a mortgage with massive interest rates...and feeling like a sub class citizen even after 5 years of our F/F IVA....??? just getting a mortgage with a high street lender or even just a name i recognize would feel like an achievement.

Any help or advise would be welcomed with open arms...(((hug))) thanks xxx

MIVAA

Hi Amberrose,

I believe that high street mortgage lenders will only refer to the latest 3 years of your credit file when assessing the risk of lending to someone who has had an IVA, and as long as 3 years have elapsed since the IVA completed successfully, and there have been no further credit problems, then there is every reason to believe you will be able to take your pick from the best deals available.

Why not post a thread on the 'Mortgages and Endowments' board and see if you can get an idea of the rates you could expect to benefit from on there.

HTH

MIVAA

amberrose_2

Thankyou Mivaa...that sounds positive....I know when i asked at alliance and Leicester (who we bank with) for a re mortgage the last time...2 years ago they said a big fat NO....i try to stay calm but do feel slightly peed off by it considering there really isn't any risk to them....1) we have never in 15 years missed a mortgage payment 2) if we don't pay they get our house 3) some fool did actually give us a mortgage.....so who's missing out....:)

I know there are reasons they have to stick too but i wish they could look at each application based on its own merit and not just protocol.

I really hope what you said about the 3 years thing is the case cos that make me feel much better when it comes to dec next year when we will be hunting for a new mortgage and hopefully a better deal.

Thanks again for your time...xx