Mortgage 7 years after IVA

worby10

I had a Iva 7 years ago so obviously this has dropped off my credit report etc. When I apply for a mortgage will this affect me now it no longer shows? I think I will be asked if I have ever been made bankcrupt but an Iva is different. Will I have to pay a higher interest rate or pay a bigger deposit? We can only afford 10 percent at the min. My partner has no credit issus so hopefully this will help...

FoggyBrain_2

As long as the company you go to wasn't associated with any of your creditors and the IVA has dropped off your record, then they will not know about it. However, many have reworded that "ever been bankrupt" question! You will need to consider carefully how you answer as a lie here could invalidate your application, or, if discovered later could lose you the house (it also happens to be fraud).

With the way things are in the economic world, 10% might not be enough, even for the squeaky clean. The mortgage market was just beginning to get some confidence back and now many banks have had their credit ratings downgraded, which will make everyone jittery again.

Have you checked that the IVA has, indeed, dropped off ? If any of the defaults were incorrectly dated, it might not have.

worby10

Hi thanks for your response. Definitely all dropped off my credit file, I spent the last six months getting them all cleared up.

worby10

I thought once I had cleared the IVA and it had dropped off it wouldn't ever bother me again but looks like this won't be the case. I don't get why I wouldn't get a decent mortgage though as I got approved straight away for a platinum credit card at 16.9% which surly shows my credit is good?

FoggyBrain_2

You might be lucky Worby -- but all mortgage lenders are picky in the extreme at the moment. If we go into a "double dip" the security on a 90% mortgage won't cover the loan, so borrowers have to be god-like to qualify.

danielanthony

I got a 90% mortgage from Britannia 6 years after starting my iva, this was two years ago when mortgages were even harder to get. Just remortgaged this month with ING so I can say that an iva is no problem so long as it comes off your credit file and all your other accounts are ok

worby10

That sounds promising. Will be speaking to the mortgage advisor tomorrow so fingers crossed...

trooper32

hi everyone could someone pls advice me on my situation. i failed my iva nearly 4 yrs ago and av heard nothing from anyone . I considered bankruptcy and contacted a company called xit debt they came to my house and wanted £1000 to help me after paying £700 alarm bells began ringing so i done some research and discovered there address was actually a pizza shop . I was foolish and made a mistake . Ive not paid anymore money out to anyone and was un aware that after 6 yrs a failed iva is cleared from your credit rating . Does this happen automatically or are there steps i need to take . Im also in hope of buying a property in the future . ANY INFORMATION WOULD BE VERY GRATEFULL

FoggyBrain_2

Hi Trooper. A failed IVA will not just disappear I am afraid, and the creditors can keep adding defaults and can start chasing you for the debt, which you still owe, plus interest and charges. I am afraid they will pop out of the woodwork at any time.