Finishing an IVA - Can we now buy?

ldr2607

In August 2017 my wife and I complete our IVA. At the time of our IVA start we were shouldering around £20k of unsecured debt and had a joint annual income of around £27k. In 2013 we surrended our mortgage and had our home of 13 years repossessed. We werent in arrears but we actually wrote to the lender and informed them that wed like to terminate the mortgage in mutual agreement due to our financial circumstance. They accepted and we left owing nothing and with nothing owed........although they have flagged it as a repossession on our credit file.
However, over the last 3 years, weve worked really hard to secure a joint annual income of around £55k. Were on the home straight in completing our IVA with just 6 payments left to make. We now live in social housing with our children.
We have heard lots of conflicting info from what youd expect to be reliable sources so Im hoping that somebody could clarify for us once and for all. We realistically believe that we can save £12k per year from the end of our IVA in a bid to reattain a mortgage of around £120k.
1 - Are we able to get another mortgage?
2 - How long is it before our credit file is completely clear of any record of the above?

Or should we prepare for a lifetime of renting? Or perhaps look to buy our Council home?
Were at a crossroads and a time in our life when we need to decide our future housing options. Any advice or information would be fantastic, thanks very much for your anticipated support.

Vikipollard

Congratulations on doubling your income!:j

When did you start your IVA? Was it a 5 or 6 year arrangement?

I believe it will appear on your file until 6 years have passed or the completion certificate is issued and the Register is updated to remove you from it, whichever is the later.

I was in an IVA which completed four years ago (though it took another year for the company - Grant Thornton - to actually issue the completion certificate, so I appeared on the Register for 7 years until 2013).

I was never on the mortgage, so it was a 6 year arrangement.

My husband (who's never had financial difficulties) and I have just been accepted for a 5 year fixed rate remortgage at 2.74% without any problem. I know we *could* have got a lower rate, but I wanted a five year fix as this is the amount of time it will take us to pay off the entire mortgage.

I tell you this solely so you see that it is possible to get another mortgage, accepting that your circumstances are different to mine, as ours was no additional borrowing.

Be prepared to use a whole-of-market broker if you need to, and expect to have to pay a higher deposit - and also a higher interest rate. If none of those three things turn out to be the case, then all is good.

sourcrates

Hi,

Your individual voluntary arrangement will show on your credit file for 6 years, from the date it was agreed, it will then disappear, as though it was never there, your name will also be removed from the insolvency register.

So yes, you should be able to get another mortgage, the law states all traces of defaults, debt arrangements etc, be removed from your file after a period of 6 years, no one is expected to suffer from bad debt information for ever.

ldr2607

Ah thats great news! I thought it'd sit there for years and years. As were both +40 its getting tight to go for another mortgage, but that really has cheered us up!
It was originally a 5 year plan but was extended by 6 months as we took a payment break.
A change in career allowed us the opportunity to increase our salarys significantly.

Could I just ask, the 'repossession' or termination of our previous mortgage.....how long will that stay on there for?

Were completely prepared to pay a higher deposit, or a higher rate of interest initially to reassure our lender, and hope that after the initial fixed period and a strong record of perfect payments we can secure a better rate.

Massive thanks for taking the time to reply, I know theres thousands of posts. But really appreciate speaking to people who can empathise, share knowledge and experience. Perfect.

sourcrates

ldr2607 wrote: »

Ah thats great news!
Could I just ask, the 'repossession' or termination of our previous mortgage.....how long will that stay on there for?
.

What is it marked as now, a default ? A CCJ ?

How ever it's marked, six years is the limit, after which it will be gone.

ldr2607

On my 'Clearscore' report it says 'default and repossession'.

adyj73

It should be six years from the date of default on your credit score

Good luck for the future

foxy-stoat

Well done for getting to the end. As said your default history will stay for 6 years from the start but you have to answer all questions honestly though - so if the mortgage application askes if you have ever been insolvent or had a repossession you will have to answer yes. By using a whole of market broker, they will know who will accept ex IVA'ers.

Good lucks