How do I clear my IVA?

suey2y

Hubby and I had no choice but to take on an IVA 5 years ago. We've never missed a payment.
Since we took it out, unusually, our fortunes have improved v dramatically and we are now in a position to pay off the debt as quickly as possible. Outstanding is about 10k.
Debt companies have been great, even offering discounts if we pay it off in a lump.
So it seems totally logical, that given we are now a superb debt prospect, banks might be equally constructive. The logical thing would be to borrow the 10k at a decent rate and pay the whole lot off over a year or 18 months.
But the bank tell me not only would they never consider it, but they wouldn't lend me any money for say a mortgage or loan for 6 YEARS after the IVA is cleared!!!
So I'm now an extremely attractive prospect to them and they don't want my business? Can this be true?

[Deleted User]

If you're in an IVA, then I wouldn't expect anyone to be lending to you. I'm not sure it is even allowed.

Even if they did, they would measure the risk that you wouldn't pay off what you already owe, but squander the new £10k and be unable to repay that.

Oakdene

Very doubtful you'll get any high street banks lending to you but you could try the MSE loan eligibility checker...

toddle2u

A condition of an IVA is that you are not allowed to obtain further credit. Therefore you would be unable to get the loan due to the terms of the IVA. The IVA is recorded on your credit file for 6 years AFTER it has finished which means that you would struggle to obtain credit from high street lenders for that time. An IVA is normally for 5 years anyway and you have been in one for five years. How long have you left and why do you just not see it out as set out in the terms of the IVA?

Gaz83

suey2y wrote: »

So I'm now an extremely attractive prospect to them and they don't want my business? Can this be true?

At one point in the past you were an extremely attractive prospect to them and they took your business. How did that work out for them?

Gaz83

Also: If you need to borrow the money to pay off the IVA, you're not really in a position to clear the IVA as quickly as possible.

Also (again): Some banks and building societies will not lend to a person in perpetuity if there have been repayment problems in the past.

Brock_and_Roll

So I'm now an extremely attractive prospect to them


No you most definitely are not. The lenders that you previously defaulted on may choose NEVER to lend to you again. For other lenders, the fact that you have bee in an DMP (i.e. defaulted on your original financial obligations) is a big black mark, albeit one that will dissipate as time passes.


and they don't want my business? Can this be true?

Correct


If your financial situation has improved dramatically then it wont take long to save up the money to pay off the debt.

[Deleted User]

suey2y wrote: »

Hubby and I had no choice but to take on an IVA 5 years ago. We've never missed a payment.

So I'm now an extremely attractive prospect to them and they don't want my business? Can this be true?

Yes it's true. I am the same of another formal solution that is a DRO more than 4 years on. Disregards any proportion of debt paid back before landing up with it. Banks and other considerables are off limits for me no matter what my circumstances are.

Once someone enters into a formal solution, it's always to late unless with the exception they seriously lied about their situation to obtain the solution in the first place or bad luck in receiving substantial compo! Years later, ah the anguish so it could be worse.

foxy-stoat

I would be putting 50% of the additional income you have now got into a seperate account, as you will be expected to pay this at the annual review.

If your in year 5 then arent you nearly done anyway and you will own nothing....assuming your in an IVA and not a DMP.

You will be able to get a mortgage 6 years from the START of your IVA, but only with 20-25% cash deposit which may well take you 6 years to save up.

ReadingTim

You're an attractive prospect to a debt recovery outfit, who may have only paid a couple of pennies for every pound of debt you owe, as they're making a profit out of you. You're offered discounts because companies prefer certainty to doubt - they'll take £80 off you for certain now, rather than wait a couple of week for £100, which they might not get.

You are not an attractive prospect to the bank, with whom your "business" has been limited to borrowing money and not repaying. This is not the sort of business they want, as you have found out.

marliepanda

suey2y wrote: »

Hubby and I had no choice but to take on an IVA 5 years ago. We've never missed a payment.
Since we took it out, unusually, our fortunes have improved v dramatically and we are now in a position to pay off the debt as quickly as possible. Outstanding is about 10k.
Debt companies have been great, even offering discounts if we pay it off in a lump.
So it seems totally logical, that given we are now a superb debt prospect, banks might be equally constructive. The logical thing would be to borrow the 10k at a decent rate and pay the whole lot off over a year or 18 months.
But the bank tell me not only would they never consider it, but they wouldn't lend me any money for say a mortgage or loan for 6 YEARS after the IVA is cleared!!!
So I'm now an extremely attractive prospect to them and they don't want my business? Can this be true?

You want to lend money to pay off defaulted debts which you should have paid many years before.


You are not in a good position to pay off debt. (that would be having money)


You are not an extremely attractive nor superb debt prospect. I am not sure what has given you this idea.


Sorry to be so harsh but this is cloud cuckoo land talk.