Life after the completion of an IVA?

lsmith87_2

Hi everyone,

This is my first post on here, we came across the forum after myself & my partner were looking online for advise/info on where we stand after paying off an IVA...

My partner paid off his IVA early in July 2010, the actual end date was August 2010.

We are saving at the moment to be able to get our first mortgage, and after a visit to the bank last month the lady we spoke with said my partner would have to wait 6 years from the completion of his IVA (which we were very upset about at the time) - we now think we have been wrongly advised as it seems people on here are saying it is 6 yrs from the yr the IVA starts. Is this correct? Can anyone offer us any good advise?

We have applied for a credit report online as a first step & are just awaiting the results.

Any information/help you can offer would be great! Thank you in advance...

debtinfo

There is no rule as such, you can apply for a mortgage whenever you want. It is down to the bank whether they want to lend to you.

FoggyBrain_2

The defaults arising from the IVA should all be dated the date the IVA was accepted. After six yeasr from this date they will "drop off" your credit file and the will have a clean credit report.

However, lenders don't rely solely on credit reference agency reports and each has their own criteria. She could have been mistaken, or her company have that policy.

lsmith87_2

Thank you, thats really helpful.
The bank we visited who said my partner would not be able to get a mortgage amongst other things, was Natwest. She advised that he try to apply for a credit card with them to help to build his credit rating, but wasnt confident he would be able to qualify... She applied for one for him anyway & this was accepted. The visit to Natwest has completely confused me, i came out there thinking we wouldnt be able to buy a house (unless we did it soley with me) for 6 yrs from now!!

If we did get a mortgage once the everything has 'dropped off' are we looking at a higher rate on a mortgage?
Also, will him having the credit now & using it, help to give him a better credit ref?

Can anyone advise the best people to talk to about this?

Thank you.

debtinfo

generally from now on you will require a larger deposit and will have higher interest rates if you find a bank that will lend to you, this will usually diminish over time. One thing to consider is this, you will always forevermore be an ex IVA person ie someone that was insolvent. The public mood changes over time for instance lending criteria is very tight at the moment, so sometimes it will be easier sometimes harder but you will always be in the lower end of the scale of people that banks want to lend to

FoggyBrain_2

To improve the situation that Debtinfo alludes to, yes, a good credit card history will help. I would suggest you use it for, say, petrol purchases only and clear it every month.

Another plus point will be to save for as large a deposit as possible, to reduce the lenders risk. Regular savings will also demonstrate the ability to pay a large sum regularly (as if paying the IVA didn't do that !!).

When the time comes to apply, speak to as many lenders as possible, ask at the outset what their lending criteria are --- if they depend entirely on scoring it will be a "no go". If, however, as sometimes happens, a human being with a brain is involved in the process, you stand a better chance.

Moi_63

Paying off your IVA early will not speed up the process of it dropping off your partners credit record.

Defaults will drop off six years from the start of the IVA. Any applied during the IVA will have to be removed as they should not be filed once you are in an IVA.

Once you have your credit report you can take things from there.

Has your partner got his completion certificate yet?

Personally, I'd use the time between now and six years from the start of his IVA to save a bit more up towards your deposit.

Do you know when the IVA started?

lsmith87_2

Yes we are saving as much as we can already, the bigger deposit the better

Yes i think we have the certificate - 'Notice of Completion of Voluntary Arrangement'?

The actual IVA was approved on the 3rd August 2005. So does that mean by the 3rd Aug 2011, this year it will be cleared from his credit record?

Although it hasnt been even 6 months since the IVA was completed the bank have given my partner a credit card, does this seem normal to you?

Thanks.

Nickc_2

Hi - we're in a similar boat. We started out IVA in July 2006 and completed early, but only last year (July 2010).
We want to move house and actually sold very quickly before I really looked into the mortgage situation. What a shock! I've had an IFA looking into this for the last few weeks and there are only a couple of options.
1 - Get a 50% mortgage and raise the remainder ourselves from family/friends until the 6 years post start of IVA are up and we can borrow the 80% we need...... OR
2 - You get a close relative/friend to get a Buy To Let mortgage and let you rent off them for a year or two, then get your own mortgage and buy it back. This will have to be a regulated mortgage so you can only get 75% loan to value ratio at the moment, but it is an option.
Hope that helps :-)

lsmith87_2

Thank you for your info, we are willing to wait until the 6 yrs are up & just save, save, save as much as we can! On a positive note at least we'll have a great amount to put down on a mortgage which so many people dont!

lsmith87_2

Hi everyone,

Thank you for your replies last month.
We have now got a credit report from Credit Expert, and trying to make sure its all up to date...

Can someone advise me... On the Account information where it is showing all details of the lenders, all the dates are different in the 'default' section. Should all of these defaulted when my partner took out the IVA? August 2005?

If this does need changing, how do we go about doing this? Can someone do this for you? Do you have to contact each of the lenders?

I am also adding my partner to the electrol role as he isnt currently on this, someone advised this will also look better on report.

Any other advise would be great! Thanks.