Failed IVA in 2009 (1 year in) mortgae application in 2014/15??

baldylady

Hi

I went into an IVA in August 2008. I also had a couple of other defualts in 2008.

In December 2009 my IVA failed due to me being unable to afford the repayments because of increased living costs.

Now, I have been enquiring into mortgages the past couple of days and onbiously my failed IVA is a problem, my question though - after the 6 years what will have happened to my failed IVA on the credit file? I have a 2 year plan from now to save for my 10% deposit so realistically looking to buy a house in late 2015 or early 2016.

Does anyone have any suggestions/advice or knowledge what will happen to my credit score in the future? Its only in the past 2 months that i have been able to obtain a credit card to beging the long process of improving my credit history.

Thanks

emlarbs

What happened after your IVA failed - did you go bankrupt or settle your debts another way?

I guess it will depend on how you dealt with your debts as to when you can get a mortgage in future.

baldylady

Hi

The IVA failed, and shows as failed on my credit file, but I havent been chased for the debts since, apart from 1 letter months ago.

I havent been BR or settled the debts. in fact, all the debts that were included on the IVA are now no longer on my credit file - just the IVA in August 2008.

Thank you ever so much for replying

Tixy

If one or more of your creditors obtains a CCJ against you and assuming you cannot pay in full within a month then it will trash your credit file again and make getting a mortgage near impossible in the near future.

If they don't but you do not repay the debts first then when you apply for a mortgage then you should declare the outstanding debts on your mortgage application. If you are applying in 2014/2015 then they would not be statute barred by that point.

If the debts become statute barred before you apply for a mortgage (i.e. if you apply after December 2015 and if your creditors haven't commenced court action by then) then I would seek some advice from a debt advice charity about whether it is appropriate not to include details of the debts in your mortgage application (even when statute barred the debts do still exist they just cannot be enforced through court).

baldylady

Thanks for that Tixy...

It would probaly be early 2016 we apply for the mortgage - any idea as to how my credit file will look then? Its all new and very confusing for me..

Tixy

baldylady wrote: »

Thanks for that Tixy...

It would probaly be early 2016 we apply for the mortgage - any idea as to how my credit file will look then? Its all new and very confusing for me..

That depends on what happens between now and then.

It might just show the 2 defaults from 2012 on your file you mention on the other thread.

If you opened any new credit accounts it would show them and whatever is recorded in relation to them.

But equally it could show CCJs if your creditors sucessfully obtain CCJs against you.
Or if a creditor petitioned to make you bankrupt then it would show that.

baldylady

I plan on paying one of the 2012 defaults in full early next year when I have available funds to do so (before we save for deposits)

I have 2 opened credit cards and a mobile phone contract which are all up to date and with minimal balances.

The 6 year period begins in March - August. I will be interested to see what my credit score goes up to then. At the moment its 457

Tixy

Even if paid the defaults from 2012 will still show on your file in 2016 (but would show as satisfied). Obviously if you don't satisfy the other one then this would be a major negative and make getting a mortgage very difficult.

How much did you owe in total when you entered the IVA?

To be honest I'd think it would be really unlikely for all these debts to become statute barred and for none of your creditors to chase you/take court action.

I wouldn't be making long terms plans for getting a mortgage just hoping that none of your creditors will take action against you. You really need to have a plan B in place as well.

You say on the other thread your IVA shows as completed on your noddle file - have you checked what is showing on your other 2 credit files? and importantly have you checked what is showing on the insolvency register currently (any potential mortgage lender would search that). You can search it here http://www.insolvencydirect.bis.gov.uk/bankruptcy/bankruptcysearch.htm

baldylady

yes the IVA shows as completed on all... not satisfied

i do not appear on the insolvency register