Mortgage after IVA

richo78

Hello, I finished paying my Iva last Nov (2011) after 5 long years. In the years I have been paying off my debt me and my partner have managed to save £10,000 for a deposit on a mortgage. After much looking around and throwing questions to everybody who would listen we aapproached a bank for a mortgage and was told that we would need a bigger amount to put down and also we would have to wait a further 12 months before they will even think about a mortgage. We approached an independent financial advisor who came back with the same answer.
Can anybody throw any light on the matter? Is it the case we will have to keep waiting or are there any organisations willing to give us a cahnce?
Thankyou

catieeb06

Hi,

There is a lender that will look at lending to you, however your deposit must constitute 50% of the purchase price.

Other than that, some high street lenders will look 12 months after discharge.

All I suggest at the moment is allow the time to pass and find some way of building up your credit file post bankruptcy.

richo78

Thanks for the reply. Its just as I thought. looks like i'll have to sit tight and wait it out. Seems that bankrupcy would have been a better option for me. I was in a debt management plan for two years before my IVA. It takes such a long time to get your name cleared, 7 years now.
Thanks again.

didaiva

Should only take 6 years for the bad data to come off your credit file, at which point I would have thought you'd be ok.

vicki488

Hi there. Everyone told me I wouldn't stand a chance in getting a mortgage. My iva ended in jan 2011. I have spoken to 2 independant whole market brokers which have both said that with 10% deposit I will be fine. As professionals in the field they have lenders who are only interested in the last 6 years. So basically if the iva and defaults are no longer on your credit file you will be ok. I filled out the paperwork for my mortgage today. They also know the lenders that won't touch ex bankrupts and Iva's and they just don't apply to them. If you walk into a high street bank you will most likely struggle tho.

catieeb06

vicki488 wrote: »

Hi there. Everyone told me I wouldn't stand a chance in getting a mortgage. My iva ended in jan 2011. I have spoken to 2 independant whole market brokers which have both said that with 10% deposit I will be fine. As professionals in the field they have lenders who are only interested in the last 6 years. So basically if the iva and defaults are no longer on your credit file you will be ok. I filled out the paperwork for my mortgage today. They also know the lenders that won't touch ex bankrupts and Iva's and they just don't apply to them. If you walk into a high street bank you will most likely struggle tho.

The start of the IVA will be removed from your credit file.

That's not the point anyway, the OP is at least 10 months behind you therefore rendering your advice moot as yes, by that time a year will have elapsed and therefore he can come under high street lenders capabilities.

vicki488

Just letting them know my situation so they know what they are aiming for!

didaiva

Do the high street banks and building societies still ask the question. "Have you ever been bankrupt or entered into an arrangement with creditors?" on their mortgage application forms.

Will this then stop me applying in the high street, even after 6 years when my credit file is back to normal or am I doomed to going to a all of market broker on higher rates for the rest of my life having had a IVA? :eek:

catieeb06

Yes- they still will ask that question. It's against the law to declare false information and when your solicitor carried out a bankruptcy search when you move house/lender it will come up.

Not necessary to use a broker but it's certainly helpful as some lenders will accept after 1 yr, some after 3, some after 4, some after 6 and some will NEVER accept an application from someone who's been declared bankrupt or been through an IVA.

The broker is best placed to show you where to do.

didaiva

I would be a first time buyer, never had a mortgage in my life. I'm coming towards the 6 year mark where the IVA and defaults should have gone from my credit file so there should be no record of it anywhere.

Are you saying now there is a record somewhere of the IVA ? Post the 6 years and outside of the Credit Reference Agencies?

Seems very unfair to penalise for life. Do you know if my bank or building society will accept me, I have bank and saving account with Lloyds TSB and Nationwide. Is there a bank I should start building a relationship with now that will accept me, or will one of these be ok?

catieeb06

Your details are held on the insolvency register. I don't know how long they are held on there for but I presume for longer than the 6 years.

When you entered into the IVA it should have been made clear to you that this will affect your chances of obtaining further credit specifically mortgages.

Lloyds TSB are a direct only lender therefore I have no knowledge of their procedures, however Nationwide, certainly from the intermediary side will consider an application 12 months post discharge subject to credit search and score.