Life after iva??? Is there one?

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vicxzy
vicxzy Posts: 273 Forumite
Hi,

I've posted similar questions in other parts of the forum but maybe I posted them in the wrong place.
I'm considering an IVA & what I need to know is:
IS THERE LIFE AFTER AN IVA?!!
Has anyone ever been able to get a mortgage after an IVA more specifically??
I have defaults & debts due to huge unexpected life events that I'm unlikely to clear without an IVA but I cant stand the thought of being branded forever :eek: if that's going to happen hadn't I may as well go Bankrupt?:eek:

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  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
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    Yes, there is life after an IVA, and a few people I know have managed to get mortgages, one from a high street lender.

    Bankruptcy might be an option, if you have no assets to protect or your career would be in jeopardy and a good IP will discuss all options with you.

    POP over to https://www.iva.co.uk where there is a lively forum and you can get a picture of life in and after an IVA.
  • thinkpositive1
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    I certainly hope there is life after an IVA. I am in Year 2 of mine and having researched all the info and advice I could, I did so on the basis my credit file would look A-OK again 6 years after the defaults on my credit accounts kicked in.

    I don't want credit cards and personal loans again but I certainly hope I don't have a problem if / when I want to re-mortgage in the future, post IVA.

    I don't think your IVA should cause a "problem" when 6 years have elapsed after starting the IVA or when the defaults began.

    If anyone knows differently I think we'd both be intersted.
  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
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    The only potential mortgage problems are if you apply to a company who is part of the same group as any of your creditors, as they keep their own records for up to 6 years after the IVA, hence your relationship with them, has finished. Whereas a completely new company will only see a clear report 6 years from the start of the IVA.

    Again there is the thorny subject of the question on the application form, "Have you ever been bankrupt?" to which you can truthfully reply "No". Hoever, these days, some are asking "Have to ever been bankrupt or entered into an arrangement with your creditors" --- in truth the answer to that one would be "Yes".

    I do know of a broker elsewhere who has successfully arranged post IVA mortgages, and I am sure, if he can do it, so can others. A poster on another forum managed to get a high street lender to give him a mortgage at current rates a year after his IVA ended --- so there IS hope.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
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    ^^^^^^ Sounds like me......there IS life after an IVA or should I say, they is CREDIT after an IVA.

    You just need to have upwards of 25% deposit if you want a mortgage in the future.

    Also the banks look at you with the same eyes wether you have had an IVA or been bankrupt, although with an IVA you tend to learn how to save and spend money year on year.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • vicxzy
    vicxzy Posts: 273 Forumite
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    Thanks guys I dont really want to go bankrupt as have a car etc that I cant afford to lose as I need it to get to work etc so IVA may be the best option?
    I would hope that in the future lenders start to be a little more lenient with IVAs I know so many people who have them :(
    So for arguments sake I have a current account & credit card with Natwest the default on my Natwest is only £300 & they agreed to reduced my repayments in writing whilst I'm on maternity leave so I think a default was rather harsh in their case. If I cleared the default with them then did an IVA on my other credit would they consider me for a mortgage in 6 years time or would they see a £300 default from 6 years ago?

    Thanks.
  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
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    Hi. Although the IVA will disappear from your credit reports 6 years from the start ( assuming completion), your records with Natwest will be retained by them for up to 6 years after the end of your relationship with them, so they will see the default. Would clearing the default completely wipe any debt with Natwest ? If not, they will also have to be included in the IVA, as ALL unsecured lending must be declared.
  • vicxzy
    vicxzy Posts: 273 Forumite
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    Hi Foggy yes I only owe £300 to Natwest On my credit card & have no overdraft so when I'm back at work could clear this pretty quick & in full :) so Natwest wouldn't need to be involved in the IVA I hope to keep my bank account open with them too is that possible if I have an IVA can I still have a bank account? Thanks!
  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
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    Hi again, vicxzy. I have a full account with Natwest, which I opened right at the start of my IVA ... so far it is still open !!!! As long as you don't have any overdraft facility and the bank isn't part of the same group as any creditor, it should be OK.

    HSBC and First Direct, however, do close accounts of those in IVA's, even if they are not included in the IVA.
  • vicxzy
    vicxzy Posts: 273 Forumite
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    Fabulous I hope I can keep it open!
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