Life after IVA

Jenlucyr

Myself and my husband entered into an IVA in April 2012, D/C August 2017. We sold our house and had an offer accepted on a house, approached a mortgage broker, accepted with natwest. However, natwest then said that they won't proceed with the application because of internal markers against us, which are old overdrafts, that were part of the IVA and paid, as agreed via our insolvency practitioner.

After delving and making a formal complaint, it seems that natwest wrote off those debts in November last year, and can't tell me how long they will remain. So, my question is, can they hold onto that information once the IVA is paid as agreed and keep holding it against us, with the new GDPR and ICO rules?

We're at a loss and find it unfair that this seems to be going against us, even more annoyed that when entering into an IVA, you're not told that it'll affect you beyond another 3-6 years, clearly would've gone to prison for less time.

sourcrates

Hi,


With hindsight perhaps it was not the best idea to apply to a bank with whom you had previous debt, for a mortgage.


Creditors can keep internal records for as long as they wish, your IVA and associated defaults, would all vanish from your credit file after 6 years, so your chances of acceptance after this time would of been as good as anyone else, with any other lender.


Why on earth did you choose a previous creditor in the first place ?

Jenlucyr

Hi,

Because we had little choice of who would even look at us, alot of companies wanted 6 years post discharge of IVA, or a larger deposit. During an IVA you are not allowed to save any money either and we have no one who can help us further with a larger deposit.

Because it's completed and finished, our credit files repaired, I hadn't even considered it being an issue.

Life after an IVA is just as tough as during, it shouldn't be made impossible to move on with your life, once you've paid and completed as the courts agreed.

Thank you for your input.

PrettyKittyKat

Your IVA should no longer show on your credit file, so you can approach any lender for a mortgage. However the lack of a credit history may be an issue for some, you need to show that you can manage credit effectively.

However, any that you had a debt with will have internal records that hold this information and they are able to use their own records as part of the decision making process. They have previously written off a large proportion of debt so it is understandable that they don't want to take that risk again.

Your mortgage adviser should have advised you of this and suggested a different lender to try. if they are a mortgage lender worth their salt then they should be able to do this now. Otherwise search for one with more experience of post IVA clients.

Jenlucyr

You're right, it doesn't show on my credit file anymore and we've worked hard to clean up our files. In short, had we not had any issues with natwest before, this wouldn't be an issue. We also had a mortgage with them for 4 years when we first bought our house, but I doubt this will help us. We knew our options were limited, they were our best option, now looks like we'll be stuck for another few years. It's punishing, wish we'd known how difficult it'd be post IVA.

PrettyKittyKat

Have you tried other lenders? Lots of people get mortgages with the IVA or bankruptcy still showing on their credit file so you should be able to get one.

Jenlucyr

Yes, to no avail. We have a limited deposit, which also proves to be an issue. If we had another 5%, we could go elsewhere, but we just don't.

PrettyKittyKat

Seems the IVA being on their records isn't your only issue then, as with a higher deposit more options would be open. It is disappointing when you set your heart on something but sadly it seems tightening your belt and saving as hard as you can for a little longer is the best way to go.

foxy-stoat

Your IVA will drop off your file 6 years from the start - but the fact you had an IVA will never change. So when asked, have you EVER been insolvent the answer has to be yes - the key is choosing the right lender who will accept ex-IVAers after 6 years - a whole of market broker who has placed an ex-IVAer in the last 12 months will be able to help you.

If you have a low deposit then you may need to save up some more but you have already won as you are clear of your past debts - which would of taken you longer than 6 years to clear, not to mention the interest you would of saved.

If you havent done the PPI reclaim thing and y our IP hasnt then maybe do that.