Advice needed please

S_sid

Hi,

I am in a bit of situation..... I hope someone can provide me with some information or advice.

I am in a joint mortgage with my brother which I took out before I met my husband. During my time on the joint mortgage I entered an IVA which will have successfully completed 6 years ago this August 2016.

I am now in the process of buying my own home with my husband once the buyout from the joint mortgage completes in a few weeks. We were planning to start our buying process in September once my 6 years post IVA has been reached. The problem is, our landlord has given us written notice this week to leave our rented flat of 7 years by 31st August as she is selling the flat.

I am worried that a mortgage lender will not consider us if we have just moved in to a new place in September. Would a lender understand we were not intending on moving as we have written confirmation of the reason we had to move?

With moving, there will be credit checks by the letting agency before we moved in to new rented accommodation. We won't be on the electoral register etc
I don't know how big of an issue this will be, it's causing sleepless nights.

On the plus side, my husband and I have a £40,000 deposit and he is a first time buyer. I have also built up my credit rating post IVA.

Where do we stand with our current situation? Has anyone been through something similar?

Thanks for reading

ACG

Have you been discharged from the IVA for 6 years or will August be when you are discharged?

AnotherJoe

Do you realise you'll have to pay an extra 3% on the house you are buying because you will own two properties?

S_sid

It will have been 6 years in August 2016 since I was discharged from my IVA.

Once my brothers remortgage completes I will no longer be on his mortgage as we are going through a transfer of equity.

ACG

There will be lenders who would look at it now. You will have more choices once the 6 years are up.

Its probably worth speaking to a broker though as an IVA is a form of insolvancy and treated very much the same as bankruptcy in the eyes of a lender.

S_sid

Thanks, ACG. My six years are up this August and I plan on speaking to a broker in September about applying for a mortgage.

As we will have to leave our current tenancy of 7 years which is where we have built our history, do you think it will be a problem applying for a mortgage as soon as we have moved in to new rented accommodation? Its not something we can prevent as our landlord is selling the flat we currently live in and we have no choice but to move out.

ACG

It will have an effect on your score, so its not ideal really but there is not a lot you can do.

S_sid

I've thought about asking my landlord if we can stay until an offer is accepted. I'm hoping this will buy me some time and I can get my mortgage application under way asap.

Thanks for all the responses!

nkkingston

I wouldn't worry too much about moving; some people make a point of renting in an area before buying, so have short little tenancies immediately prior to buying a house.

When you saying you're in the buying process, where are you in that? Have you found a house and made an offer? Have you instructed a solicitor? It sounds like you haven't started the mortgage application yet. My concern is that you could be looking at several months before you can move yet, which may be longer than your landlady is happy with. It took us five months from offer accepted to completion (which is actually still a couple of weeks away) and that was in a chain free, uncomplicated situation - our vendors are just dragging their heels because they're doing their new place up!

Your worst case scenario if you move into another rental place now is that you end up with an overlap between moving and the end of your AST and have to pay rent and mortgage simultaneously. Your worst case scenario if you don't move is that house buying takes so long your landlady has time to section 21 you, go to court, and get you legally evicted while you're still waiting to complete. Now, financially, the former might not be viable for you, which is why you're willing to risk the latter, but that's a choice only you have all the information to make.