Mortgages and IVA's

mattyha

Hi there,

Myself and my Grilfriend are looking to be in a position to buy a property in the next few months.

However my GF is currently in an IVA for another 4 years.

I was wondering if anyone had any experience / advise of obtaining a mortgage if you are in an IVA.

My income is 16(hopfully 17 later this month)K / year with no outgoings other than rent / bills.

GF 14K / year with £243 a month going to her IVA.

We would be looking for hopfully a £80-£100K mortgage if anyone thinks this is possible.

We currently rent and pay all council tax / bills so know we could easily afford to pay up to £700 a month on a mortgage without changin gour lives at all.

Just wanting to know if this is possible with an IVA before exploring other options (such as having a parent guarentor a mortgage).

Forgot to add I have got rouglh £10K for deposit & fee's.

Cheers

Matt

homer_j_3

IVA's are designed to get people back on track and can stop further credit being obtained however your wage may allow you to borrow 80k alone but you would need at least 10 possibly 15% deposit. Doing that may allow you to achieve your goal of property ownership without getting messed up with the IVA.

mattyha

Thanks for that,

so a mortgage of 80K may be possibel for myself but it may be best to leave out Girlfriend because of the IVA.

I was hoping that maybe some secured credit was available with an IVA or would that just lead to us getting very poor interst rates?

As I said above currently got about £10K deposit, could probably even get to £15K with a little help from my friends (family).

homer_j_3

Yeah IVA's will seriously affect the mortgages you can get. Higher income multiples may not give you the leanest rate but it should be better than the ones that allow IVA's and to be honest, I am not sure if any do. I know none from the panel I work from do.

Addicted2Chocolate

i think her credit rating would be very poor (same as if she was bankrupt) for six years from date of IVA. so rate offered to her would be worse than to you alone.

mattyha

So the best thing to do would be to discount GF from the mortgage and try to find somewhere I can borrow at a higher multiple from for starters?

The other option I may have is to have a parent guarentor a mortgage, how does this work? Or again is it best to try and stick it along with a high income multiple?

Sorry for so many questions but I like to know where I stand on things!

homer_j_3

your best bet would be to seek professional advice. My comments were just to give you something to think about

mattyha

Yea I know, thanks for your comments anyhow.

Good to make sure we don;t get our hopes up high for no reason.

Cheers

homer_j_3

thats fine - let us know if you have any problems.