IVA Mortgage?

uphillstruggle_2

I have spoken to my Supervisor who said it should be fine and put me through to their recommended MA. I do need to put a request in writing to the IP but I am assured its just a formality.

As I have no mortgage at the moment and had didnt have one when the IVA was set up there is no equity release clause.

Even though my Supervisor said it is fine to apply for a mortgage I am still a little anxious. Your message has prompted me to call my supervisor just to see how I go about putting it in writing. I hope i havent been given false info by my supervisore and I hope the IP doesnt turn around and tell me no! :-(

princepilot

If you have 16k available , i thought you would HAVE TO pay this to your creditors whilst on an iva?

matt

luckyfool

princepilot wrote: »

If you have 16k available , i thought you would HAVE TO pay this to your creditors whilst on an iva?

matt

The £16,000 is not necessarily his. It could be his partner on the mortgage, or it could be a parental gift subject to it being used as a mortgage deposit. Obviously if you have £16,000 in the bank and you approach the IVA supervisor about being able to get a mortgage I would expect them to take a hard line. Having said that I have never had a client be refused permission from their IVA supervisor for the mortgage.

Generally speaking, if you are in an IVA which is well conducted and has been running over 12 months then subject to affordability most Sub Prime lenders will consider 85 or 90%, with one or two willing to consider 95%. Based on The purchase price you are looking at, to get access to the 90% deals you would need 10%, plus 1% stamp duty, and around £1,200-1,400 for legal fees and a valuation. This is 3 or 4 thousand more than you have at the moment. If this was possible though you are likely to find the rates will be better,

Hope this helps,

Regards

Luckyfool