Mortgage in an IVA

csgohan4

nothing wrong with renting, least you get to have your own place and no need to worry about maintenance

Farcasting

cant do any overtime now as any additional income 10% of my basic salary 50% needs to be paid to my IVA so dont really see it being worth earning above the extra 10%

Farcasting

edit meant to quote

Farcasting

ACG wrote: »

I would completely knock this on the head.

I can not think of any lenders who will allow an unrelated person (mum) to lend the deposit to sons partner and apply a second charge on the deeds as Sparkey suggests - I am happy to be corrected. The 2 things individually can be done with limited lenders but not combined as far as I am aware.

To the OP, I think you are being completely unrealistic. You seem to want your cake and eat it. If you come in to money whilst in the IVA, this needs to be declared and paid in to the IVA. You are playing a dangerous game by having your mum give money to your partner with strings attached for your benefit.

Mum going on the Mortgage with the partner might be an option, but if mum owns a property then you are going to be liable for higher stamp duty. Also mums age could be an issue.

I think you either need mum to gift deposit and take the risks that come with that, or let your partner buy on her own. The other issue here is what happens if you have kids and split up? You/your mum are unlikely to ever see that money again. Certainly not for many many years.

the houses we've been looking at are 115k-125k so below the income band for stamp duty. my grandad is moving in with his girlfriend so we can live at his house rent free so im thinking that may be an option for the meantime until my IVA is over. my mam is 55 and if they were to get a mortgage it would be over 15 years with a 40-50% of the house value as a deposit. if i am not involved at all in the process off buying the house once my IVA is finished can i be given the house from my mam or put onto the deeds so it would be my half my house once IVA finished? or should i just totally give up on ever owning a house?

ACG

Stamp duty would still be due if your mum owns her own property and went on this property.
The second property stamp duty rule is a 3% surcharge at every banding - so around £3-4k would be due.

enthusiasticsaver

Farcasting wrote: »

cant do any overtime now as any additional income 10% of my basic salary 50% needs to be paid to my IVA so dont really see it being worth earning above the extra 10%

Won't the IVA be paid off quicker then? That is the benefit of extra income otherwise you are just going to be treading water until it is gone unless you are expecting to go the full five or six years and then have any remaining debt written off?

You can't accept any money or property while you have the current IVA so that knocks the idea of you getting a deposit for a mortgage on the head and you won't get a mortgage with an IVA in place anyway. You also cannot have a non resident (your mum) named on a mortgageable property as the lenders won't allow this. Your girlfriend can buy in her own name but has to come up with the deposit herself and you won't have an interest in the property. Or you rent together.

Your mum cannot gift a house which is mortgaged which presumably it still will be in 5 or 6 years time. If she is going to buy it off your grandad it would be seen as a 2nd property with double stamp duty and probably a higher rate as it wont be a residential mortgage.

You are only 24 so I don't think you need to give up on the idea of owning property but you need to sort your finances out so when the IVA finishes you are in the best possible position to start rebuilding your credit history. Learn to save and budget.

sal_III

Farcasting wrote: »

cant do any overtime now as any additional income 10% of my basic salary 50% needs to be paid to my IVA so dont really see it being worth earning above the extra 10%

How much is your debt? Can't you use your mom's money to settle it and move on? Clearing your credit file earlier and save the money you are currently repaying to the IVA for a deposit?

Meanwhile rent or live in your Granddad's house together, which is recommended before buying joint property anyway.

davidwood681

Do your girlfriend and mum a favour and tell them you've changed your mind

Farcasting

enthusiasticsaver wrote: »

Won't the IVA be paid off quicker then? That is the benefit of extra income otherwise you are just going to be treading water until it is gone unless you are expecting to go the full five or six years and then have any remaining debt written off?

You can't accept any money or property while you have the current IVA so that knocks the idea of you getting a deposit for a mortgage on the head and you won't get a mortgage with an IVA in place anyway. You also cannot have a non resident (your mum) named on a mortgageable property as the lenders won't allow this. Your girlfriend can buy in her own name but has to come up with the deposit herself and you won't have an interest in the property. Or you rent together.

Your mum cannot gift a house which is mortgaged which presumably it still will be in 5 or 6 years time. If she is going to buy it off your grandad it would be seen as a 2nd property with double stamp duty and probably a higher rate as it wont be a residential mortgage.

You are only 24 so I don't think you need to give up on the idea of owning property but you need to sort your finances out so when the IVA finishes you are in the best possible position to start rebuilding your credit history. Learn to save and budget.

it wouldnt pay it off any quicker as im only paying back about 13% of the debt, the rest will be written off.

Thanks for this tho alot of help. we'll probally just live at my grandads and my girlfriend will still be able to save as wont be charged rent at my grandads and she currently pays 550 a month rent