Mortgage after IVA

edited 30 November -1 at 1:00AM in IVA & DRO
13 replies 3.6K views
FfdanFfdan Forumite
6 Posts
edited 30 November -1 at 1:00AM in IVA & DRO
Hi all

I am hoping to get a mortgage with my wife in january 2019. This will be 6 years after my IVA started. I’ll have enough money for a 10% deposit. I realise that I’ll have to go through a specialist broker, but is it likely that we will be able to get a mortgage at this point (we earn decent money and our credit reports are good apart from the IVA and associated defaults (although they will be removed by then)).

Assuming we can get a mortgage, I am intrigued as to what sort of mortgage rate others have got recently in similar situations. This will help me be realistic when thinking about what sort of mortgage we could afford in the future. I’m guessing it will be higher than most people would expect, but how much higher on average? Any ideas would be welcome. Thank you.
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Replies

  • ACGACG Forumite
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    You may find your options very limited. Most lenders work off the discharge date/end date of the IVA/Bankruptcy rather than the start date.

    So I am assuming you will have been discharged for a year in January? At that point I can only think of a couple of lenders, only 1 or 2 would consider you at 90% and would be subject to score.

    I would get your credit reports in front of a broker a couple of months in advance so they can help to give some guidance and potentially set your expectations.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I have been out of an iva for 10 yrs and as there is now now blemished records on credit report had no problem securing a 95% mortgage. So there is always hope after debt. Just learn the lessons from it. Good luck.
  • sourcratessourcrates Forumite, Board Guide
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    After 6 years all trace will be gone from your credit file.


    Maybe best to wait a month or two until the IVA vanishes, then you will have as much chance as the next man.
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  • ACGACG Forumite
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    It is not about whether or not it is on your credit report. Most lenders criteria is black and white on this sort of thing and it states 6 years discharged. It is likely it would get picked up at the legal stage and so you risk wasting money and time and losing the property.

    You are doing it right to check in advance but dont assume it not being on your credit report means it is done and dusted.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • FfdanFfdan Forumite
    6 Posts
    Thanks for the replies guys - not the best news tbh but at least it helps me to be realistic. Thank you.

    I would still be interested to hear from anyone that got a mortgage soon after finishing an IVA though...
  • foxy-stoatfoxy-stoat Forumite
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    I got a mortgage 5 months after my 5 year IVA finished - deposit was 25% which was the minimum the lender would accept but standard rates from the High Street lender via a broker.

    That was about 7-8 years ago so maybe not relevant today. Only advice is save more and aim for 15-20% and get a credit card to buy monthly fuel/food and clear it every month, just to get some credit history - dont get hooked up on credit scores though.
  • FfdanFfdan Forumite
    6 Posts
    Thank you for that. That’s some excellent advice.
  • BLOW_FLYBLOW_FLY Forumite
    115 Posts
    We got a 90% mortgage last year through Halifax 6 yrs after my wife!!!8217;s IVA started.

    Begun by going through a broker but for a few reasons ended up using my bank Halifax.

    BF
  • FfdanFfdan Forumite
    6 Posts
    Wow. That’s some good news. Was it a competitive interest rate or were you both penalised?
  • foxy-stoatfoxy-stoat Forumite
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    Standard FTB rate, think it was 2.99 or 3.99 I cant remember.
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