Remortgage After IVA

Miss_Skint

Hi


I entered into an IVA in November 2011 which was subsequently paid off in September 2012 when a relative kindly loaned me the money to make a full and final settlement.


I have been patiently watching my credit file and waiting for it to be clear of defaults and anything else to do with the IVA. I have checked with all the credit reference agencies and my credit file is now clear and my credit score is very good.


My current mortgage is on the standard variable rate and I also have a car loan. I was hoping to be able to re-mortgage my home over a shorter term but include additional borrowing to pay off a car loan so I can finally be totally debt free.


However, I sought advice from a mortgage broker (who charges a £599 minimum fee). Via email he stated that as my IVA was only discharged recently he was unable to find a company that would lend me any money. He also said that the earliest would be 1 year following discharge but preferably I should wait another 3 or 4 or a maximum of 6 years following discharge of an IVA. Furthermore, he suggested that a second charge may be the way forward ???? (I'm assuming that this means on top of the standard £599).


With regards the broker, I do feel that he is half heartedly pushing for more money as the balance of my mortgage is not very big so it wouldn't benefit him financially to take on my case. However, is what he is saying about giving it more time true? I was expecting to be able to remortgage without any difficulty once my credit file was clear.


Any advice will be gratefully appreciated.


Many thanks x

csgohan4

have you tried looking to see if your lender offers retention products online which require no credit checks?

Miss_Skint

Thanks for your quick response.


I haven't tried my current lender as after waiting so long I'm kind of protective of my clean credit file and was willing to pay a broker rather than going it alone and risk having my application be rejected.




I may take the plunge if that is the only option available.

ACG

Sorry, I couldnt help but laugh (the brokers fault for not explaining it to you properly). The second charge is not a fee you the pay the broker. The second charge is a loan that sits behind the mortgage, ie loan to pay off the car but you keep your current mortgage as is.

But if you paid off the IVA in 2012, were you not discharged at that point?

Miss_Skint

Ahh thanks for explaining that ACG. To be fair to the broker he did say he would call me later to explain.


Yes I was discharged and received a completion certificate in September 2012 but have been waiting for everything to drop of my credit file.

ACG

You would have been eligible for normal rates in 2015 in that case.
No idea why the broker is telling you to wait even longer.

Miss_Skint

Thanks again ACG. The broker is working on my discharge date and not the date that I entered into the IVA which is the date that i believe he should be using..

ACG

Most lenders work from the discharge date, which you have said was 2012. If it is 2012 then you should have decent options now.