Getting a mortgage after an IVA?

Conrad

Dave_Ham wrote: »

Do not worry, this is utter rubbish!

Subject to some other income, property, loan to value details this should be fine now..

You probably made the right call on using a broker, just did not get appropriate advice.

I wish you well...

Dave I'm often perplexed by posts like this. You know full well we're in the teeth of a global lending crisis. No lender will do a high LTV case like this, WHY WOULD THEY WHEN THERE'S MASSIVE DEMAND FROM AN ARMY OF CLEAN APPLICANTS.
Plus it's highly unlikely the lenders own internal indemnity insurance would allow lending in this situation.
Santander are potentialy right on the edge, Halifax Iinc Lloyds and C&G) were part nationalised and far from being stable.
We have massive risk from European loans going bad which are owned by UK Banks.

Do you not watch the news?

The only way night be possible is in his partners name.

Conrad

Lizard72 wrote: »

Our IVA ended in February 2011 and by April 2011 we were in our own home with a mortgage via a whole of the market broker.....we had a significant deposit due to inheritance but it goes to show there are mortgage products out there albeit at slightly higher rates for bad credit records.

No it doesn't go to show anything other than the fact you had A SIGNIFICANT DEPOSIT.
We're in a global credit crunch, there are no lenders in the world looking to lend high LTV's to those with unsatisfactory credit records. A bit of mild adverse credit and a 90% loan is occasionaly possible, but an IVA is a very serious matter.

Simon_gloster

bigmouse wrote: »

Yep they said that the underwriters would not currently consider lending to anyone who was less than 3 years clear of the IVA - at least they didnt have to do a credit search before telling us this. The advisors in the bank need to be told this upfront as we went through the rigmarole of doing the application, answering all her questions, getting the AIP and key facts etc only to be told 'it's a no from me!'. My wife was very upset and we had a bust up afterwards - well done LTSB. All this was after I had asked the question re the length of time since my IVA completion as soon as we sat down!!!!
The adviser said sh'e see us in 2 years time!!!

Well done LTSB, are you having a laugh? Why is it their fault...its yours.

Ok the adviser should have been more tactful, however they have targets. If it did go thru you probanly wouldnt have posted here or sung theirl praises.

By the way c&g will do iva's/br at least 3 yes complete, bank with them, and have not had one late payment since....also the little caveat of a 25% deposit.

MoneySaverLog

Simon_gloster wrote: »

Well done LTSB, are you having a laugh? Why is it their fault...its yours.

I disagree, they should know their own lending criteria.

Simon_gloster wrote: »

Ok the adviser should have been more tactful, however they have targets.

The adviser should have known that an application would be unsuccessful if out of a IVA less than 3 years.

There was little point in wasting the OP's time and theirs with a application which was just going to get a flat rejection.

Simon_gloster wrote: »

By the way c&g will do iva's/br at least 3 yes complete, bank with them, and have not had one late payment since....also the little caveat of a 25% deposit.

My circumstances are slightly different in that I can wait the 3-5 years post IVA and I'm aiming for more than a 25% deposit, so nearer the time I'll give them a go as I bank with them too and cannot fault Lloyds TSB at the moment. Assuming here C&G are the same as Lloyds for their mortgages.

bigmouse

Simon_gloster wrote: »

Well done LTSB, are you having a laugh? Why is it their fault...its yours.

Ok the adviser should have been more tactful, however they have targets. If it did go thru you probanly wouldnt have posted here or sung theirl praises.

By the way c&g will do iva's/br at least 3 yes complete, bank with them, and have not had one late payment since....also the little caveat of a 25% deposit.

Would have thought that when we made the appt AND asked the question, the adviser would / should have mentioned it esp. as me and wife took the morning off work (- having targets etc led to the PPI scam). I DID MAKE MY FEELINGS CLEAR TO HER AND COMPLAINED TO THE MANAGER TOO

Dave_Ham

Conrad wrote: »

Dave I'm often perplexed by posts like this. You know full well we're in the teeth of a global lending crisis. No lender will do a high LTV case like this, WHY WOULD THEY WHEN THERE'S MASSIVE DEMAND FROM AN ARMY OF CLEAN APPLICANTS.
Plus it's highly unlikely the lenders own internal indemnity insurance would allow lending in this situation.
Santander are potentialy right on the edge, Halifax Iinc Lloyds and C&G) were part nationalised and far from being stable.
We have massive risk from European loans going bad which are owned by UK Banks.

Do you not watch the news?

The only way night be possible is in his partners name.

Frustrated does now come close. Read the thread and do not take out of context.

L&C said that no-one will lend at all to a discharged IVA within 3 years of being discharged (That is likely to be therefore 8 years from inception)

I said this is utter rubbish, as lender will and yes they will - placed business within 3 years of discharge in last 3 month (FACT)

So forget the world is melting, news rubbish and concentrate on the facts. The OP had been given inaccurate information, I corrected it.

Whether I agree, disagree is totally irrelevant. The OP wanted information and I gave it - factually.

It is a real shame that achieving a mortgage in the current climate is quite often determined by how good the broker is, or in how much detail the client looks for a solution - sad but true

Conrad - if you actually want me to specifically name names in terms of lenders so you do not disadvantage any of your clients then I am happy to do some by pm - you are never to old to learn...

Simon_gloster

MoneySaverLog wrote: »

I disagree, they should know their own lending criteria.


The adviser should have known that an application would be unsuccessful if out of a IVA less than 3 years.

There was little point in wasting the OP's time and theirs with a application which was just going to get a flat rejection.



My circumstances are slightly different in that I can wait the 3-5 years post IVA and I'm aiming for more than a 25% deposit, so nearer the time I'll give them a go as I bank with them too and cannot fault Lloyds TSB at the moment. Assuming here C&G are the same as Lloyds for their mortgages.

All complete crap.

There is nothing in their lending manuals around heavy adverse, its on a case to case basis.

Why on earth when your in an iva and you approach a high street lender is beyond me.y experience is those that have been in an iva are far more switched on than those who have not.

MoneySaverLog

Simon_gloster wrote: »

All complete crap.

There is nothing in their lending manuals around heavy adverse, its on a case to case basis.

Why on earth when your in an iva and you approach a high street lender is beyond me.y experience is those that have been in an iva are far more switched on than those who have not.

It's not crap if the underwriters do not look for X years after completing the IVA then that's the policy and should be communicated to the customer before applying. Also I am NOT in a IVA anymore. I had a IVA in the past there is a difference.

Those who have come out of a IVA are probably less of a risk financially too, with no debts, and very unlikely to repeat past mistakes. Mortgages are secured lending so at the end of the day if you default you lose the house and no one wins.

Having done a IVA I can say it's not the easy way out It should not preclude anyone from going into the high street and getting a standard competitive mortgage forever that's my view on the subject.

GMS

MoneySaverLog wrote: »

Those who have come out of a IVA are probably less of a risk financially too, with no debts, and very unlikely to repeat past mistakes. Mortgages are secured lending so at the end of the day if you default you lose the house and no one wins.

Having done a IVA I can say it's not the easy way out It should not preclude anyone from going into the high street and getting a standard competitive mortgage forever that's my view on the subject.

Mortgages are secured as you rightly say but when an application is considered to be high risk there is no comfort in security for the lender on high loan to value cases. A 90% LTV default will most likely result in a loss on sale for the lender after fees etc have been taken into account. A 50% LTV will almost certainly be demed a no risk loan in terms of security.

Saying somebody who has had an IVA is LESS of a risk is ridiculous. How can thatg be? Less than somebody who has never missed a payment on anything in their life?

Mistakes are made through life and all we can do is learn from them. Being in an IVA will exclude some lenders for ever but not all. Having access to a high street rate will eventually happen but you can't expect it to be straight away. Rightly or wrongly anybody who has entered into an IVA will be seen as high risk.

MoneySaverLog

GMS wrote: »

Saying somebody who has had an IVA is LESS of a risk is ridiculous. How can thatg be? Less than somebody who has never missed a payment on anything in their life?

Perhaps I should expand on that, it would depend on how the credit is being managed now. If they have no debts then obviously they are going to be looked on in a better light than someone who has or has done a IVA.

But there are people who have not dealt with their debts with their head in the sand hoping it will go away that are up to their eyeballs in it that would be more of a risk than someone who is debt free having resolved their debt issues through a IVA.

That was what I was referring to. Agree about LTV and time though and it makes sense, but to exclude people from mortgages because they had a IVA years ago is like treating us as second class citizens. That I don't agree with.