Mortgage after a lump sum IVA?

Cody

Dear f\orum;

I hope to complete a lump sum IVA in a few weeks, and have the IVA closed in a few months.

I am starting to look forward, after the IVA, and I expect some readers may be sniggering at my naivity, but I am keen to attempt to buy a house.

This might be made easier since my partner has an excellent credit rating (but a part time salary).

I have read it would be best to go to a broker, banks will not touch people with IVAs, even if over 6 years.

My questions:

Will I need to wait 6 years before there is any chance of getting a mortgage.
How can my salarly be taken into account if my partner was to apply for a mortgage on her own? (could I be labelled as a rent paying lodger?)
Will larger deposits make lenders more likely to accept a person post IVA?, and if so, what sort of percentage?


thankyou in advance

cody

Foxy-Stoat_3

25% minimum cash deposit in bank before thinking about looking for a house to buy.

go to 1 whole of market broker who has arranged a mortgage with iva history in the last 12 months.

expect to pay high admin and set up fees so budget for these also.

i would try joint mortgage applications and be 100% honest. pointless trying to dis-associate yorself from your partner and try the lodger income route as the broker and mortgage company will know the score anyway. Best be honest and try for the best interest rate possible.

Good luck!!

road2recovery

I was in an IVA in Nov 2005, which was finished via full and final settlement in Nov 2007.

I have managed to get a mortgage through Nationwide Building Society - without using a broker. All done online. Applied early February, completed and moved into new home end of March.

It can be done, but it pays to build your credit rating. I used a Vanquis credit card every month for 18 months, then applied to Nationwide for one of their credit cards and FlexAccount (before I had the CashCard+ account with Nationwide). Both were accepted end of last year.

vicki488

My IVA ended in Jan 2011 and dropped off my credit file in January this year. I have cleaned my credit file to perfection and am also looking to get a mortgage. I have approached 2 brokers and both have said that getting a mortgage once the IVA is no longer on your credit files is more than possible. We have a 10% deposit. People told me before I started making enquiries that there was no way I would get a mortgage with only 10% but that turned out to be wrong. I have an appointment at my bank (Santander) on Saturday but I think they are likely to say no to me. The brokers know which lenders don't ask certain questions which would enable us to suceed. People say you should always try to avoid brokers because they charge fees and obviously a bank on the high street don't, but some people on here have actually told me that they were turned down by their bank and then went to a broker and got a much better deal. I am very tempted to try Nationwide now though.

Anondebtadvisor

The mortgage market is changing all the time and the best people to keep up with those changes are the brokers in my opinion!

I'm sure you will get a mortgage under these circumstances :-)

Foxy-Stoat_3

We visited 3 high street banks and BS's to apply for a mortgage, was turned down for all 3 AND had 3 credit searches on on the same day. This looks very bad on your credit file, we didnt know at the time tho.

Best thing to do is enquire if they would take on someone with a previous IVA rather than hoping there wont be a question on the mortgage application saying " have you EVER been made insolvent or entered into an IVA/BR etc "

Broker all the way for me, until our fixed rate deal is over then we will look else where. Our fees were not that bad but without the broker we would of never got a mortgage in the first place.

kns_2

Whats stopping you saying you have not been in an IVA once it has dropped off your credit record ?
They have no other way of finding out so why should you be penalised again you have paid your debts off.
Also why should they be able to charge you a higher rate because of this you have completed you IVA.
Let's face it they have the property as security if you dont pay so why charge you more:mad:

Foxy-Stoat_3

If you lie on the mortgage application form it would be mortgage fraud.

Say they find out...expect to see a post on the other forum
"help i lied on my mortgage application and now i have lost my house, deposit and been sent to prison for 6 months and have a criminal record....now i want to get a good rate on my next mortgage"

It aint worth it.

They will charge you a higher rate as you have a proven track record for not paying your debts off in full.
Banks tend not to like folk like this.

kns_2

Don't you think the question should be have you ever been in arrears on your mortgage in the past x amount of years.

Rather than have you been bankrupt or in an IVA I just think they jump on the band wagon so they can charge more.
As they don't say to you if your payments are all up to date and you have never missed any payments with us in say 5 yrs we will refund the higher interest payments above the normal rate though do they.
I think they are just Sharks and just take the option to make more money out of you.
That's my opinion but then what does that count:p

vicki488

I do think it's madness. Alot of them automatically think we are a danger when it comes to money and I have found that people who have had an iva tend to be a safer bet as they have learnt a hard valuable lesson.

Foxy-Stoat_3

kns wrote: »

I think they are just Sharks and just take the option to make more money out of you.

What you on about, of course all lending firms are sharks!

Borrow £100,000 to buy a property and pay back the £100,000 plus £200,000 over 25 years in interest payments, assuming you dont remortgage and borrow more money to buy a bigger house.

And who say renting is dead money.