Failed IVA and mortgage - advise needed!

jorainbow

Hi all. Bit of a cross post but the main reason is a mortgage! At the end of last year my IVA was failed because I requested a reduction in payments for a short time but Payplan would not take it to my creditors - they just failed it. The debt is showing as default on my credit file and I need to deal with that. However I have the Right to Buy my current home for £81k has been valued by the Housing Association at £105 but on current sales the properties are worth in the region of £120k. I will obviously not get a mortgage on my own until my debt is settled and on reading the forum even when my debt is settled a mortgage is going to be difficulty. Can anyone advise a way I can settle my current debt and obtain a mortgage together as there is so much equity in the property? I have no idea where to start. Thanks for any help in advance.

opinions4u

Find yourself a reputable whole of market mortgage broker locally.

He/she will tell you how it really is pretty quickly.

Personally, I don't think you'll get a mortgage for some time to come. The lenders are short of funds and don't want to lend to people with a history of failing to meet their commitments. Can you blame them?

Dan_1976

You have to think about sorting the debt first. An IVA is really the step before bankruptcy. If you failed an IVA you need to sort this asap.

Payplan are quite good, National debtline will give good advice.

From a lenders point of view failing an IVA is not good. You will be sub prime and sub prime right to buys have been getting some bad press.

You have no equity in that house as it is not yours yet, try and get a year of the IVA under your belt and think about it again.

I know what your trying to do and it makes sense, but lenders are not in the business of taking risks at the mo.