IVA, mortgage and moving house

kst101

My husband and I have recently entered an IVA, not having planned to move in the near future.

He had a job interview which he had on the off chance of being offered the job, and has been offered it. We have spoken to our mortage provider who said that we wouldn't be able to transfer the mortgage if we were to move house and that it would be unlikely we would be able to get another mortgage with an IVA.

1) I realise we would have to pay a much higher rate of interest than people with good credit ratings, but is it possible to get a mortgage with and then after an IVA?

2) What would happen if we were to sell our house and then rent a property? Would this have an effect on the IVA?

My husband is going to speak to our IP about this, but was interested in the thoughts/experiences of people on here.

One further question is about a third party paying our settlement amount - if this were to happen would the IVA status remain for 5 years or would it be for a shorter period?

Charco_2

You CAN sell your home and find a rental property.

Any proceeds of the sale (minus a few re-location costs) would have to be brought in to the IVA... if your property is in negative equity then this would obviously be difficult but you COULD i suppose ask for a payment holiday...

The fact that you are then going to be renting and possibly having more disposable income might help (but you could always try to lose a few £s too - rental property is further away so more petrol or more public transport).

If a third party offers to settle your IVA for you then so well and so good but the record of it will still remain on the history of your Credit File for the full six years!

kst101

Am coming back to this again as we spoke to the accountants administering the IVA for us in March, before putting house on the market and they seemed to see no problems with us selling the house and then renting another one.

So we put house on the market and have accepted an offer for slightly higher than our mortgage, so not much equity.

Spoke to the accountants today and now they are seeing potential problems. Due to the remortgage clause in the IVA (of needing to remortage our property during the 4th year) if we are renting then we wouldn't be able to do this. The person I spoke to is speaking with her manager.

Am now rather stressed as husband's job finishes on Friday, new one (160 miles away) starts a week on Tuesday. His company is paying for him to stay up there for a while so no immediate problem but am wondering what the possibilities for us are if there are problems. Am a bit :mad: as I truely felt we had disclosed everything to the accountants. At least we are doing this now and not when we are about to complete I suppose.

Charco_2

It really shouldn't matter.... the fact that there is only a small amount of equity shows that in the fourth year valuation you probably wouldn't have had equity to release then anyway! (its a red herring to say you cant release it now coz you have to release it only in the fourth year!)

The little extra that you do get now should be used for relocation costs for you and there is NOTHING to bring into the arrangement but you could always offer a payment in good faith to keep everyone happy!

kst101

Thank you

Was wondering if we would be able to offer to pay more (we should be able to afford it as husband will be working nearer home and so fuel costs will go down). Or should we offer to extend it for a year (as I know we would have had to do if we didn't have sufficient equity at year 4).

Am worried we will be told we should hold out for a higher offer on the house but when the IVA was accepted the valuation amount that was done was lower than the offer we have accepted anyway.

Was thinking it was all going a bit too smoothly - hopefully this is a minor blip and it will be all right.