Mortgage after IVA?

sherrybobbins

Hi

My husband and I have been to our bank today to ask about a mortgage. He has previously been on a mortgage (but not any more) I have never had a mortgage. I have had an IVA which ends in April 2015 (Woo Hoo!!) so we went to basically find out where we stand in regards to a mortgage. My parents have said they will help with deposit so 10% will be do-able.

I was prepared to be told 'wait for a year from when your IVA has ended' and 'expect high interest rate for the first few years of your mortgage' but instead have been told that we will never get a mortgage with a bank or building society EVER! She said 'with regards to mortgages an IVA is worse than bankruptcy' and 'go to a back street lender with extortionate interest, that's your only option'.

We are completely gutted!

Is this true? What are our options with regards a mortgage or is it renting now and forever?

Any help and advice really appreciated.
Thanks

Dave_Ham

This is not true.


You are likely to need formal advice, although chances are you can either


1. Take out mortgage in Husbands sole name. Word of caution on source of deposit


2. Increase your deposit to possibly 30%and then joint options could be available.


3. Wait until 6 years from registration of the IVA and then a few more lenders come into play.


As I said at the start though, get some specific professional advice.


Best of luck

kingstreet

Astonishing rubbish from someone who is supposed to know about mortgages!

Dave is right.

We have just had a client have his old IVA removed from his credit file as it should have dropped off after six years in November 2014.

Once it was off, we got an agreement in principle with a high street lender immediately.

sofiar

Excellent info Dave, total rubbish, there are thousands of people in these positions

sherrybobbins

Thanks so much! We can breath a huge sigh of relief!

I'll wait until the 6 year date from registration of IVA then try again. We'll definately get some formal advice although I thought that's what we were doing. We'll need advice on who to get advice from!

Thanks again. Really appreciated! :beer:

kingstreet

Make sure all record of it has dropped off all three versions of your credit file before approaching any lenders - either directly or via a broker.

sherrybobbins

Hi all,

Just wanted to post a quick update as it may help those who search this thread.

We were accepted for a mortgage in August 2016 and get the keys to our own home on Monday (21st Sept 2016), so the answer is 'Yes', you can have a mortgage after an IVA! Woop!

We sorted our credit files out (got rid of outdated data and got a credit card in my name) then went for a mortgage through a broker who found us a great deal over 20 years 2 year fixed at 2.49%.

Life can be great again after debt and it's definitely worth all the 'tight purse strings' for those years that felt like forever!