Financial Life after IVA Completed over a year ago

dbt3mummy

Hi,

My husband's IVA completed in October 2011 and our certificate was issued with no problems in December 2011.

It has been over a year since we were discharged and I was wondering how long before we can start living a more freely?

We have recently moved into a large house with adjoining annexe with his parents and as this means we will never have the need for a mortgage we wanted to apply for a small loan to do the windows etc.

He has banked with Natwest for over 6 years and we have never approached them for a loan before. Now that he is discharged and anything adverse should be missing from his credit report, do you think he would be successful getting a loan? We don't want to pay the horrendous interest the window company were offering! Nor do we really want little credit footprints across his file if it's going to be a no hope!

How have you found life after an IVA?

notmyrealusername

Before he applies for anything he will need to check his credit report with all three credit reference agencies - Experian, Equifax and Call Credit - to check that there is nothing nasty lurking on there still. The statutory report is £2 each or if he hasn't been a member before he can sign up for free 30 day trials - just don't forget to cancel before the 30 days is up!

There may be incorrectly dated defaults still on there or duplicated accounts from where the accounts were sold from the original bank to a collection company. I also found that Equifax added a notice of correction saying that an IVA had been on my files and was removed from the insolvency service records meaning my otherwise clean files were tainted! They removed it when I disputed it.

Has he had any credit whatsoever since completing the IVA? Having a positive credit history showing on the report eg mobile phone, utilities etc will help. Does he earn enough to be able to service the loan? It's all good and well having a clean credit history but if the loan is unaffordable that means nothing.

I haven't applied for a loan since my IVA finished but have been accepted for credit cards (which are ALWAYS paid off in full as soon as I get the statement, I never want to be in debt ever again!) and more recently an overdraft with my bank Natwest - initially I was declined the OD by Natwest, apparently your own bank receive regular 'feeds' from the credit reference agencies and I had applied too soon as although the IVA was off my report they data they used was from the feeds and this was still showing the IVA. I applied again 7 weeks later and the suggested amount was £2800 although I only applied for £500 as I'm only really acquiring the credit to help my files for a mortgage in the future.

The timing of your husbands IVA coming off his file is similar so Natwest may still have old 'feeds' (my timeline was IVA dropped off reports early September, applied one month after this - instant decline without even checking credit report - applied again two and a half months after IVA dropped off, late Nov, and was accepted).

It might be worth your husband going through the first few steps of applying online for an overdraft with Natwest - at the top of one of the first pages (before you submit the application in full) it gives a suggested amount, on my first application there was no suggested amount and this was when I was declined. On my second application (by which point they must have had a new 'feed' it said the suggested amount was £2790) so it will give your husband an idea of whether Natwest are prepared to give him any credit at all, bear in mind through their criteria for overdrafts and loans will be different but at least it gives an insight.

Good luck.

dbt3mummy

Thanks for your reply!

We last looked at his report in May time which was showing all adverse items as dated Nov 2006.
We will definitely re-look at this and get any letters of correction sent off.

He's always had an O/D of £100 with Natwest from opening the account so I'll give what you suggest a go and see what it comes up with.

Many Thanks