Getting a mortgage after completing an IVA?!?

Hi All,

After numerous years in debt followed by a further 5 long hard years I completed my IVA in September :) :j

I'm now trying to move on with my life and rebuild! I'm at a point where i am living in shared accom and want to move out - this will either be to a decent rented property or potentially somewhere i buy. My problem is that i don't think i will get a mortgage due to my IVA finishing fairly recently. An advisor @ Barclays indicated this today but where would i stand on renting a property?

I dont want to further waste dead money by renting but if i need to do this for a year or so until i can get a mortgage then so be it.

Would an agency allow me to rent a property through them due to what will still be a bad credit rating? I'm sure they'll do credit checks which may be my downfall.

Has anyone been through a similar situation??

Thanks
«1

Comments

  • Has the IVA dropped off your credit file?

    I spoke to both Santander and Nationwide, provided the IVA is over six years ago they advised that they could get me a mortgage provided everything else checked out. A mortgage broker indicated that there would be others that would be able to get me a mortgage as well. It was less likely if the IVA was less than 6 years ago and still on the credit report although it may not be impossible. The six years runs from the date the IVA started provided it was completed.

    Unfortunately I don't know about the renting side but someone here will.
  • Has the IVA dropped off your credit file?

    I spoke to both Santander and Nationwide, provided the IVA is over six years ago they advised that they could get me a mortgage provided everything else checked out. A mortgage broker indicated that there would be others that would be able to get me a mortgage as well. It was less likely if the IVA was less than 6 years ago and still on the credit report although it may not be impossible. The six years runs from the date the IVA started provided it was completed.

    Unfortunately I don't know about the renting side but someone here will.


    Thank you for taking the time to reply. I will have to look at the completion certificate for my IVA because I'm sure it actually started in Feb 2008 but due to a few breaks (agreed with my advisor @ payplan) it didn't finish until Sep 2013. Therefore it could have now dropped off my credit file!?!

    I have created an account with Experian to allow me to view my credit report but I have to wait for up to 5 days for them to send me a pin before I can access it!

    I guess I'll know a lot more then!!
  • Equifax and Noddle (CallCredit) will give you instant access online provided they can verify your identity, as an IVA is a legal notice it should show on all 3 agencies and should come off all 3 at the same time although there can be a delay.

    Equifax had also added a comment in the Notice Of Corrections section on my report and I had to ask them to remove it manually so check for that as well.

    It's always worth checking with all 3 CRAs as they will sometime have different information or not updated some information and although Experian seems to be the main agency checked the others could also be checked and you don't want anything sneaking up on you unseen.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    Well done for completing the IVA !!

    Firstly, don't even look at somewhere to buy without 25% cash deposit in your bank.

    Secondly, renting is not 100% dead money.....
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • Foxy-Stoat wrote: »
    Well done for completing the IVA !!

    Firstly, don't even look at somewhere to buy without 25% cash deposit in your bank.

    Secondly, renting is not 100% dead money.....

    Thanks for the response! There's lots of schemes now to help buyers including one where you simply need a 5% deposit.

    I got the pin to my Experian account earlier so logged in and my credit rating is "excellent" so the IVA must now have dropped off so will rebook an appointment with the mortgage advisor and see what the score is :T
  • CKhalvashi
    CKhalvashi Posts: 12,046
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    Would an agency allow me to rent a property through them due to what will still be a bad credit rating? I'm sure they'll do credit checks which may be my downfall.

    My agent checked it with me, as I had a potential T with good references, and ok income and I said it was no problem. Any reputable agent should do the same.

    With regards to the mortgage, see what you can find out with which bank and decide from there.

    CK
    💙💛 💔
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    Thanks for the response! There's lots of schemes now to help buyers including one where you simply need a 5% deposit.

    I got the pin to my Experian account earlier so logged in and my credit rating is "excellent" so the IVA must now have dropped off so will rebook an appointment with the mortgage advisor and see what the score is :T

    Credit score, the ones you pay for mean nothing to the lenders.

    5% deposit schemes are normally for folk with an excellant credit record in the lenders eyes...being in an iva would put yousome way away from that...unfortunatly even if an iva has dropped off your file you still need to disclose it if asked on the application.

    Good luck though, and report back on your progress as it may help others
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • cardiffian83
    cardiffian83 Posts: 29 Forumite
    edited 21 March 2014 at 5:16PM
    Foxy-Stoat wrote: »
    Credit score, the ones you pay for mean nothing to the lenders.

    5% deposit schemes are normally for folk with an excellant credit record in the lenders eyes...being in an iva would put yousome way away from that...unfortunatly even if an iva has dropped off your file you still need to disclose it if asked on the application.

    Good luck though, and report back on your progress as it may help others

    Thanks again for the response.

    Who should i check with regarding my credit rating then? Experian seemed to be the one i hear most people talking about but if their scoring of 'Excellent' for me means nothing in the grand scheme of things then thats a bit of a pain.

    Regarding the 5% Deposit.....this is through a fairly new 'Help to Buy Scheme' run by the Gov..... "The Government's new Help to Buy scheme now makes it possible to buy a new or existing home with just a 5% deposit"

    The fact that the IVA has dropped off the file will certainly help initially as Barclays wouldnt consider me even getting into the nitting gritty of a Mortgage application without knowing it had dropped off my file.

    I'm also hoping that if the mortgage ends up being a no go then i should now have zero problems renting privately as if agencies did run a credit check on me it would come back as fine?

    Thanks for all assistance so far. :beer:

    ps - Just to confirm my IVA payments stopped in August as i had successfully completed the 5 year term and i have had my cert/letter confirming this so i am completely debt free now and looking to move forward.
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    You dont need to check or even know your credit rating, printing off all 3 credit reports and taking them to a Whole of Market broker and going over your history and affordibilty will all you need do. Stay off the high street including your own bank as the computer will say no.

    Good whole of market brokers will be the ones who will where to place your mortgage given your history and deposit level, you may pay higher than normal fees but it only going to be to get you on the mortgage ladder.

    For me, my iva finished and after 10 months I had a mortgage in place at sensible rates by a high street provider who previously declined me when I went to them direct. My deposit had to be minimum 25% or no lender would consider me, that was 3 years ago.
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
    The best feeling for me was went my last payment was made.....your best bet is to get a credit card and use it for food and fuel and pay it off every month, try that for 6 months while you save for a deposit, legal fees, surveys, mortage fees, stamp duty if applicable and build up some credit history......no credit history is also bad!!
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
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