do we stand a good chance for a mortgage ?

spoonynick

hello
we recently just cancelled our IVA as we really don't want to be in debt, so we are now payig everything off to be debt free and making sure we make regular payments to like rent etc .

in 1 year and a half will we stand a good chance for a mortgage concidering by then we would have already cleared our debt in 6 months time , at the time of applying we would not have owed anybody anything and have regular on time payments to everyday stuff like rent, council tax etc we do have a credit card as well which we always pay and never miss too.

will we have any kind of chance for a mortgage?

ACG

An IVA is effectively bankruptcy (in the eyes of most lenders).
Im not sure there will be any lenders at normal rates who would lend to you 6 months discharged.

What would your deposit be (as a percentage of the estimated purchase price)?

spoonynick

well in 1 year and a half we wanted to go on the help to buy with 5 % deposit. that's our goal.

ACG

I do not do HTB Equity loan mortgages so I could be wrong but I do not think you will get this through.

spoonynick

how long would you say from now, we will be able to get a mortgage then? and just a question getting a mortgage with the bank if you can show you have paid everything off and show savings and on going payments on time can the bank then kind of overlook any circumstances?

sultanabran

If all the negatives are gone from your credit file then you're looking at a minimum of 3 years since you exited your IVA.

ACG

I think minimum 12 months, but not with a 5% deposit - closer to 25%.
3 years and you would probably stand a decent chance with a 10-15% deposit.

But I could be wrong so do not let anything I say stop you just yet. I do a lot of adverse and often see people who have been to other brokers, been told no chance and then we manage to do it. It is the IVA that is muddying the waters for me.

spoonynick

ok that's fine. we were aware of an adverse credit mortgage as we have already been told we will be accepted straight away with 15% but we were really hoping for the 5% help to buy at the moment all we can really wish for is if our bank over sees anything that would stop it and only see the positives

sammyjammy

spoonynick wrote: »

ok that's fine. we were aware of an adverse credit mortgage as we have already been told we will be accepted straight away with 15% but we were really hoping for the 5% help to buy at the moment all we can really wish for is if our bank over sees anything that would stop it and only see the positives

Your bank won't look at things any differently than any other lender I can assure you. Nobody will ignore negative information held on your credit file. Paying your rent etc is an expectation not something you should expect credit for. Perhaps you ought to just concentrate on paying all your debt down and saving for a bigger deposit.

ACG

The sooner you exit the IVA the better. Most lenders look at when you exited the IVA/Bankruptcy, although there are a few that go off the entry date or just need you to be out of it.

spoonynick

ok from what I have read from this I think it will all boil down to the time and see what they say when we do apply for a mortgage, the IVA is gone and we are paying everything off. I wish I never entered into the IVA.

so thank you all for your info.