Final Year of IVA

Val43

We are in our final year of our IVA and have been asked to remortgage. I sent our latest mortgage statement off and also a current market appraisal that we had done, this appraisal showed that we were currently in neg equity, this was all sent in April/May and to date all I have had back is an email say that they would look at it in due course. I am beginning to think that this is a delay tactic and they could be waiting for the market to pick up or worse slap me at the very end of my IVA. How long can they wait? Can they force you to remortgage even if it would cost you more in the future and may be push you back into dept again?

We are due to finish April 2014 and I would also like to know how this IVA effects my credit rating, dose it appear on your credit history like bankruptcy? what are the best steps to repair it and how long would it take to repair? After the IVA has finished I was hoping to move house but if I have a poor credit rating then this would cause difficulties.

Some advise please!!

Foxy-Stoat_3

You should check your contract about the equity release. Some contracts will be extended 6-12 months if you cant release equity at the end of year 5. The cannot force your mortgage company to release equity that isn't there.

There are "sticky" threads about rebuilding your credit and how to (or not) apply for credit in the future.

The IVA information will stay on your credit file for 6 years from the start and all defaults should of dropped off 6 years from the last default, so check your credit file information is upto date.

You still need to answer all questions on application forms honestly even though your credit file won't show the IVA, ie for mortgage applications there will be a question "have you ever entered into a voluntary agreement with creditors?"

As for moving house, if your in negative equity now then you won't be moving anytime soon unless the market does pick considerably.

Good luck and well done for getting this far !!

Val43

Thanks for the advise...

Debt Free Direct have already extended my IVA by a year so I am in my 6th year can they extended it any further to obtain the remortgage?

Foxy-Stoat_3

IVA's are 5 years plus 1 if you have to release equity but cant.

So by the last payment of your IVA your credit file should be clear.

Good luck for the future!

GlamGirlie

Foxy-Stoat wrote: »

The IVA information will stay on your credit file for 6 years from the start and all defaults should of dropped off 6 years from the last default, so check your credit file information is upto date.

Val, firstly well done for getting this far!

Foxy Stoat is quite correct in saying the defaults should drop off, but 'should' and 'do' are not the same thing, unfortunately!

I have just this minute posted a question on this forum myself, as my IVA (also with Debt Free Direct) ended in June 2012, yet one default (HSBC) is still showing on my credit reports with Noddle and Equifax (Experian is clear for me now).

DFD took 13 months to close my IVA and issue my certificate of completion, during which I chased them almost monthly.

Once you receive your cert., you may need to send this to your lenders to get them to update their files and clear your history.

As an example, my MBNA card disappeared automatically following the issuance of the certificate and closure report - I didn't have to do a thing.

My Nationwide credit card still showed, so I sent them a copy, they updated their files and 6 weeks later that too has disappeared.

However, HSBC have NOT updated anything, even though DFD sent them the initial copy of the report, and I have subsequently followed it up with letters and calls.

Thus, my file is still damaged. :mad:

Hopefully this won't happen to you - but please don't assume it will all happen automatically, because it may not.