IVA near completion...mortgage required for first time buyers

bexiboo84

Hi all, I would be grateful if anyone can help or assist, im due to complete my IVA in May of this yea (yes!!) and would love to buy a house with my boyfriend. He knows all about my IVA. The thing is though Ive spoken to a couple of mortgage brokers recently to see what sort of a deposit I would need so we can have an idea. Intially my bank (the lady there has been great) said I would need about 15% with it being a joint applicaiton and my boyfriend's credit rating being good. Thereafter speaking to three different mortgage brokers ive received conflicting advice.

I was told my IVA would be on my credit report for 6 years, 5 during the IVA payments and then 1 year after. So I was thinking I could save as much as I could and maybe after the 6th year go into getting a mortgage. I have been told I am really going to struggle as it stays on for another two years after the date I complete. I dont understand?!

Im really concerned I wont be able to get a mortgage from a normal high street lender and what my credit report is going to look like!

Has anyone else been in a similar situation?! I thought once my final payment was made I could start rebuilding my credit report and now im just totally at a loss and cant see a way forward

Any help would be appreciated

Bex

Charco_2

Never heard of this two year extension... i wouldn't go looking for credit for the first year anyway, any searches on your file leave footprints behind and likely rejections which will still show up in your recent history even after your IVA has dropped off the bottom. So when other lenders go looking later they'll not see your IVA but they will see that you've had recent credit searches and wonder why you were rejected etc...

Take your time now to make sure that any defaults and notices from your creditors about your IVA all date back to the month that your IVA actually started. Some creditors are lazy about it and just make notes whenever and wherever but it is your right under the Data Protection Act to have only true and accurate information stored about you.

bexiboo84

Many thanks for that! I have obtained my credit report and will start going through it, so for confirmation everything that is paid within my IVA should start from the date it started, if not then this is wrong and who do I speak to about it?

Thanks for replying I really appreciate it!

Charco_2

You're going to have to argue it out. Your friend here is going to be the Data Protection Act and I believe there's a whole thread about this just above this one (in the stickies at the top)!

First you'll need to have a look at your credit reports - there are three of these i think (Experian, Equifax and erm.... can't remember but i'm someone will!)
If there is any information wrong on these then you can demand that is corrected. It SHOULD be enough to highlight to the credit agancy that they are holding incorrect information about you BUT a recent discussion with Fermi on these boards pointed out that sometimes that might not be the desired kick up the bum you wish it was, you MIGHT have to also contact the lenders and tell them to correct the erroneous info.

It will probably be a pain in the neck for you but it is your right to have the information corrected so just stick with it!

skintflint103

Unfortunatley mortgage underwriting is a moving target. In the boom years i regularly got mortgages for people in well conducted IVAs . However post crunch the lenders have shunk by 90% and you are only going to be able to deal with 'prime' lenders at 85%ltv. Reality says that lenders go by what is written on a credit report. Reality is they are very experienced and sophisticated in their searches and internal underwriting will give guidance as to their current motives to lend. there is so much bad publicity about 'adverse & subprime' lending it will be some years before this relaxes. You may want to try ,dependant on income if Boyfriend can get on his own Don't worry you can go on at a later stage and just need to have a Deed of Trust to establish your interest in the property. Time will heal this but don't just think crdit reference agencies are the only looky looky for lenders . It's their money their Rules (I do have full CeMAP)

bexiboo84

skintflint103 wrote: »

Unfortunatley mortgage underwriting is a moving target. In the boom years i regularly got mortgages for people in well conducted IVAs . However post crunch the lenders have shunk by 90% and you are only going to be able to deal with 'prime' lenders at 85%ltv. Reality says that lenders go by what is written on a credit report. Reality is they are very experienced and sophisticated in their searches and internal underwriting will give guidance as to their current motives to lend. there is so much bad publicity about 'adverse & subprime' lending it will be some years before this relaxes. You may want to try ,dependant on income if Boyfriend can get on his own Don't worry you can go on at a later stage and just need to have a Deed of Trust to establish your interest in the property. Time will heal this but don't just think crdit reference agencies are the only looky looky for lenders . It's their money their Rules (I do have full CeMAP)

Hi thanks for coming back to me, in respect of my boyfriends wage, we are only a young couple and with this recession he wont be able to get a mortgage on his own. Im sorry I dont understand the CeMAP thing!


Any suggestions as to what I can do?!

skintflint103

Certificate of advice and mortgage practice, anybody legally giving mortgage advice must hold CeMAP 3. Don't worry times change. Tip; many developers will help you with a deposit on a new build or re-furb or look at part buy with you local housing association these are good schemes just for people like you , however your credit file will still impede you. Just remember as with all things in life ; Giving in is not an option. teach your children that.