IVA & want mortgage...

anna5870

Hi,
My husband is coming to the end of his IVA in 3 months, he had this before we met and so far we have kept all our finances separate. But we are desperate to move house.
I have an excellent credit rating, and our house and the mortgage are both in my name. Unfortunately I am not working at the moment, so have no income to gain a re-mortgage. My husband works full time, has a good income, has not even been overdrawn since his IVA began and has made every single payment in full and on time. But sadly his credit rating is not good!
Who can we turn to to get a joint mortgage? We cannot move without one! Most of the high street lenders will not consider us until at least 12 months after the IVA is discharged. And we really don't want to wait that long, nor do we want to pay over the odds in interest.
Any advice or help would be greatly appreciated!

Thank you

debtfree2016

Hi there, someone will be along with an answer to your question soon... can't read and not reply.
Great news that your OH is coming to the end of the IVA though. True you don't want to be paying a high interest into a mortgage, if you have come this far then maybe 12 more months after the IVA has finished and a completion certificate....plus more of a deposit through saving over the 12 months must be a better option. (but I think you were already aware of that)
Good Luck.

judojub

Hi Anna
Unfortunately, you may not have much luck. The IVA remains on your husbands credit file for the 6yrs, so you'd be looking July ish next year? and you may very well struggle to get a mortgage during that time. Even if you were considered for a mortgage you would probably require a hefty deposit and the interest rates might well be through the roof.
I would perhaps try and wait until the IVA has dropped off his credit file and everything is marked as satisified. Try going through a Mortgage Broker as well rather than high street lenders as they will do credit checks which will mean more black marks on his file.

I am sure somebody will be along soon enough to give you a bit more in depth advice.

anna5870

Big thank you to you two for your replies so far... You are right, we kind of knew all that already, but we are always hopeful that there may be some other solution...
We do have a good deposit - my current mortgage is only 25% of the property value, and we would not want to increase it beyond 50%; so I was kind of hoping this would count in our favour!
The mortgage broker is a very good idea, and we were thinking of doing this in July, when his payments have finished.
Does anyone know how long it takes to get an "official" discharge? One potential lender said they may consider us once we receive this...

Thank you again...

dealer_wins

With a 50% deposit, you shouldnt find it too hard to get a mortgage once the IVA ends, as long asyour incomes meets the affordability critera.

smartiedriver_2

dealer_wins wrote: »

With a 50% deposit, you shouldnt find it too hard to get a mortgage once the IVA ends, as long asyour incomes meets the affordability critera.

Dealer Wins - unfortunately I beg to differ, from a high street lender's point of view, anyway. Regardless of deposit, the high street banks will not consider a mortgage for someone who still has the IVA on their credit history - and that means 6 years from start date.

In terms of the original question, could you not get a job now so that you can borrow on your income? If you have 25% equity and would not look to go beyond 50% parity, and you managed on your sole income before, it seems this might be possible.

In terms of lending criteria, you would need a clear credit history, 3 months' bank statements, which will be reviewed these days, and cannot have more than 60% of your NET monthly income as committed outgoings - this includes mortgage, any loans/HP/credit cards not repaid in full, any other 'commitments' such as maintenance payments to a previous partner, etc.

It will not include gym membership or other non-essential items, nor will that 60% include food or petrol.

Incidentally, if you or your partner contribute to any employer's sharesave schemes, the monthly amount can be added back into your income to give higher affordability figures. This is because you can cancel it at any time with no penalty.

Hope that helps.

Good luck!

mel12

Not sure if you'll get one or not, it depends on the mortgage market as well as your credit rating - and lenders have been more reluctant to lend since the credit crunch.

I've seen a few threads recommending speaking to an independent broker, who will know what mortgages might be available for you.

This thread - list of lenders - might also be helpful:
https://forums.moneysavingexpert.com/discussion/2918012