Ex declined a career development loan worried it's because of my IVA?

lisal0u

Hi,

Just wanted a bit if advice. I have a mortgage with my ex so we are still linked financially even though he no longer pays anything. He has recently applied for a career development loan and it was turned down due to his credit report. He has checked this and it's clean but shows searches related to me!

I was told by CCCS that my IVA would have no impact on him and he was even sent a letter explaining this.

Could I be the reason his loan was turned down?!

Any advice would be appreciated!
Lisa

smartiedriver_2

If you have (or had) any joint current accounts or joint credit facilities, you will be linked financially.

I understand you can sever this link somehow but I'm afraid I don't know how.

althas

If you are still financially linked in any way, then equifax will not remove the link (I know because I tried), even though th link was on a sole loan I had with one company and we have a joint account (that does not even show on my report) with another

If there is no link at all then ring the credit reference agency to tell them and find out what to do next

lisal0u

Were not linked by anything other than the mortgage. They won't let me take the mortgage on alone even though I've been paying it by myself for 7 months!

I'm quite worried about this as I was assured that my iva wouldn't affect him but it must be doing as his credit report is clean

adyj73

If you are in an IVA and paying a joint mortgage then the link to the other person on the mortgage shows through to you being in an IVA. My wife left me 18 months ago and we had a joint mortgage.

I remained in the property paying the joint mortgage while she pays nothing. I had to do an IVA to survive and now because she is still on the mortgage with me she is linked to bad credit as there is a charge on the property in my name on the iva.

This sounds similar to your case and may explain why he got turned down for credit - he has liability of a mortgage (doesn't matter if you are paying it all) in joint names with another person flagged a credit risk in IVA.

I also tried to get wife taken off the mortgage but the Building Society said not a cat in hell's chance as if I default they can still technically go after the ex wife who may be a better scalp not being in an iva of her own....

The house is in negative equity now so whats somewhat amusing to me is the wife who walked out can't break free financially from me and I am protected by my IVA :-)

dancingfairy

I am slightly baffled - do you have equity in the house? do you realise that at some point in the IVA - about 3 years in you will have to attempt to remortgage to release equity for you creditors (if there is any) - how can then that not possibly affect a joint home owner with you ??????
df

adyj73

dancingfairy wrote: »

I am slightly baffled - do you have equity in the house? do you realise that at some point in the IVA - about 3 years in you will have to attempt to remortgage to release equity for you creditors (if there is any) - how can then that not possibly affect a joint home owner with you ??????
df

Mines in negative equity and will be right up until the end of my IVA at the moment

lisal0u

Mines not got the required equity either to force a re-mortgage, which is highly unlikely on an iva anyway. When it comes to the end of my iva I'll probably be asked to make 12 more payments!

The realease of equity, if there is any would only be my half mot the ex's.

I'm very unhappy that we were both told it wouldn't affect him in any way and that appears to be a lie!

Tixy

Doesn't sound typical of CCCS at all - have you still got the letter from them - does it specifically say that you entering an IVA won't affect his ability to get credit despite having joint debts?
If it does I'd raise a complaint to them - if only to hope that they don't give out the same poor advice again.

Certainly without a doubt you being on an IVA will affect his ability to get credit, and continue to do so until you cease to have the mortgage together.

adyj73

lisal0u wrote: »

Mines not got the required equity either to force a re-mortgage, which is highly unlikely on an iva anyway. When it comes to the end of my iva I'll probably be asked to make 12 more payments!

The realease of equity, if there is any would only be my half mot the ex's.

I'm very unhappy that we were both told it wouldn't affect him in any way and that appears to be a lie!

This is the wonderful thing of the IVA. If it's a joint mortgage the equity against the person with the IVA is halved plus as it's only over 85% it's almost a dead cert that anyone who bought in the last 5 years in a current IVA is unlikely to have the equity required by the rules to allow a remortgage or extension after the IVA finishes. I see this as one of the big positives of the crap housing market and I hope it remains like this for the next 4 years for my own benefit. And as they reckon it's gonna last 10 years I think we will be OK. It also means at the end of the IVA I can remortgage, have her taken off and pay her half the equity which will be negligible and I get my house I've paid for anyway

:rotfl: