iva and getting a mortgage

FoggyBrain_2

It takes six years for an entry on your credit file to "drop off". All debts included in the IVA should not have a default date later than the date of acceptance of the IVA. Therefore, 6 years after the acceptance of the proposal, these defaults (and, indeed, the IVA itself) will dissappear.

I am sure someone with more knowledge than I can explain what happens with an IVA that lasts longer than 6 years ( rare, but they do happen).

bloc75

Right so my IVA proposal was accepted July 2006 - so July 2012 should be a good month.

FoggyBrain_2

Should be, Bloc. Once you have your certificate of completion, get copies of your credit files and make sure all the defaults registered by your creditors are dated the date of acceptance of the IVA (during the course of the IVA some creditors make several default entries at various dates). From reading around the forum Egg can be particularly awkward about this, but persitance pays off!

bloc75

Who's Egg? the Credit Card company? Well I don't want any credit cards, loans. All I want is a mortgage.

FoggyBrain_2

Yes, Egg is the credit card company ---- just mentioned them for the benefit of other readers who might have them as a creditor.

bloc75

ah right I see. Well I can't imagine why anyone coming out of an IVA would want to get involved with credit cards again. I know I wont.

Foxy-Stoat_3

Bloc, after the 6th year of your IVA, you should techically have NO credit history what so ever, apart from maybe direct debits on a mobile phone and your current account will show up.... This is ALSO bad from a mortgage application point of view because theres no credit history to speak of, they wont know if you have been able to keep up regular payments or not.

Its crazy!

You need to get a Pre-Payment card once your off your IVA, and pay the extra £40-£50 to register the payments on your credit file and maybe a Credit Card that has the higher rates that you will be accepted for, capital one or vanquish to build up credit history. These are like 40% interest so you MUST pay off the balance each month and use for only fuel and food that you normally use your debit card for.

Use these while your saving up and when you have enough deposit, your credit file will look better than if you have had no credit since your IVA finished.