IVA done, mortgage options

DaveLincs

Had a look about the site but can not find the info.

My IVA's last payment was October 2010, due to my creditors I only got the completion certificate through on 10th Feb showing the IVA was completed on 10th Feb.

Now my IVA is done I am looking to move out, so I am wondering if anyone could recommend a mortgage product or broker I can talk to who might be able to help me.

Thanks

Dave

FoggyBrain_2

Hi and congrats on finishing. It's going to be another year before your credit report clears. Check with the agencies that your creditors have amended the default dates to that of the date of acceptance of the IVA. Six years from that date the IVA and defaults will drop off the record.

In the meantime, you need to be building up green ticks .... mobile phone, credit builder credit card -- used sparingly and paid off every month (so no high interest to pay), happy bank ... all adds to your score. An empty credit report is as bad as a bad credit report, so you need to build some good history.

DaveLincs

FoggyBrain wrote: »

Hi and congrats on finishing. It's going to be another year before your credit report clears. Check with the agencies that your creditors have amended the default dates to that of the date of acceptance of the IVA. Six years from that date the IVA and defaults will drop off the record.

In the meantime, you need to be building up green ticks .... mobile phone, credit builder credit card -- used sparingly and paid off every month (so no high interest to pay), happy bank ... all adds to your score. An empty credit report is as bad as a bad credit report, so you need to build some good history.

So would it be fair to say I would be unlikely get a mortgage for a year or so?

What is a good credit builder credit card?

THanks

Kimbie

FoggyBrain_2

Yes, Kimbie, I think it would be fair to say that. To be honest, even squeaky clean borrowers are having a hard time right now. When the time is right look for a whole of market broker, who will have his or her ear to the ground.

Credit builder cards are the likes of Vanquis, Granite, Capital One. The interest rates are scary -- but that's not a problem as you will be paying it off EVERY month ;0) Don't go applying all over the place though, as you don't want too many searches appearing on your record either.

DaveLincs

FoggyBrain wrote: »

Yes, Kimbie, I think it would be fair to say that. To be honest, even squeaky clean borrowers are having a hard time right now. When the time is right look for a whole of market broker, who will have his or her ear to the ground.

Credit builder cards are the likes of Vanquis, Granite, Capital One. The interest rates are scary -- but that's not a problem as you will be paying it off EVERY month ;0) Don't go applying all over the place though, as you don't want too many searches appearing on your record either.

Ok thanks for the advice, I have emailed my IVA company to find out about the completion date, and where I am suppose to send the completion certificate to.

I am hoping having a large deposit and needing a small mortgage might count in my favour, but we will see.

Thanks for the advice regarding rebuilding of credit score

Kimbie

Foxy-Stoat_3

I think you may be in for a disappointment. I would apply for 1 credit card, the 40%ers, and use it only for fuel and pay it off every month, AFTER you have cleared up your credit file. Dont apply for anything until then, trust me, you will only get rejected if you have incorrect information on your credit file like defaults.

My position,

IVA completed August 2010, finished paying for IVA in Feb 2010.
Have £30,000 cash deposit,
Want to borrow £45,000 on a house worth £150,000 (wont go into details) total joint income £48,000 per year.
So on day 1 of the mortgage we have £110,000 equity on a mortgage of £45,000. Zero risk for the lender.
9% variable interest only, all fees to set up including valuation, broker and legals = £4350 GULP
There was only 1 lender looking at IVA cleared people.

Banks look at people with IVA's with the same eyes as BR's, we went everywhere.

I would save as much as you can, use 1 credit card and pay it off each month, NO LED TELLYS !!!! and maybe a contract mobile phone and never miss a payment.

Do that for the next 12 months. It will take you that long to clean up your credit file.

When you come to get a mortgage, with at least 25% deposit plus a few grand for the fees, make sure you go to a whole of market broker and even tho after 6 years your IVA will be off your credit file, there will be a question on the application fprm asking if you have EVER been insolvent. You need to be honest or your mortgage may be rejected after you have paid the huge non-returnable fees.

Good luck

DaveLincs

Well having talked to a few providers seems I am out of luck, but talking with my parents there are in a position to be able to help me so will see what comes of that

Kimbie

danielanthony

I finished my 5 year IVA in June 2008, it took me a year to correct the information held on me by the three credit reference agencies. As soon as June 2009 rolled around all the old defaults on my credit file had dropped off and I applied for a 90% mortgage with Britannia; who look at people with good credit ratings. As well as not having any defaults, I only had small credit card balances and no other credit commitments. When I got my mortgage it was the height of the mortgage 'famine' so as long as your credit file is updated correctly and you have a decent deposit you shouldn't have any troubles.

I moved into my new house with my partner in September 2009, Britannia lent us 3 times our joint salary @ 5.19%

DaveLincs

Thanks for all the advice, I will grab a copy of the letter on here I saw about cleaning up my credit rating and get the IVA completion certificate sent off.

Kimbie