Applying for a mortgage with IVA and Default

scaw2019

Good evening

Looking for some advice or if there has been any similar situations on applying for a mortgage with an IVA and default. My partner is in his 4th year of his default (£4k) and I have completed 6 years Oct 2019 of an IVA. The IVA was for a Halifax loan. Although the loan was paid off initially fine for the first 5 years, changes in financial circumstances meant that an IVA was a sensible option. Wish i hadn't but i can't change that now.!

Having saved up 10% deposit and got my credit rating up again my first mortgage application has been rejected. I have since spoke to a mortgage broker who suggested Halifax but is concerned they won't like the IVA that was from there Halifax loan. I have a decision in principle but obviously that could still get rejected.!

I have been told that no banks like ex IVA people and it must be a further 6 years from the date it closed making it a total of 12 years!!!

Has anyone had an IVA and applied for a mortgage? Is there life after debt? I feel I'm being penalised for my bad choices even though my Experian rating is excellent.!

Any help would be greatly appreciated!

CRAIGEMMA

Try Aldermore, they accept discharged IVA to 95% if settled 6 years, 80% if 2 years.

scaw2019

Thanks, does discharged mean the date the IVA finished as in the 6 year date? As I've been advised discharged could mean a further 6 years from the date it closed?

Thanks

ACG

Are you still in the IVA or have you finished it?

There are lenders who will work from when you started the IVA as opposed to then you completed it but those are few and far between.

If he is recommending Halifax but also concerned about them, it seems strange that he is recommending them.

Discharge date is the date the IVA finishes/d

scaw2019

Yes I've finished the IVA in Oct 2019 the 6th year of it. However my credit file said my file is clear however it doesn't come off the register for another 6 years. Doesn't make sense to me if I've served my 6 years i shouldn't have to do another 6.

Thanks

Thrugelmir

scaw2019 wrote: »

Doesn't make sense to me if I've served my 6 years i shouldn't have to do another 6.

Lenders will need concrete evidence that the management of your personal finances has improved. Remember lenders work at the macro not the micro level. Lending criteria is set on their experience as a whole. To them you are just a name.

scaw2019

Thanks for that. Guess finishing my iva over a year ago wouldn't be long enough for them to get that evidence. Would you suggest waiting another 6 years to build up my credit or would maybe another 2 years (so 3 years from iva closure)

Thanks

Mortgage_Adviser

Is your broker a whole of market and experienced in adverse credit? As opposed to the estate agents own broker with a panel of circa 8 lenders?

scaw2019

Hi, thanks for your reply. I'm not too sure, he was recommended to us. Do you have a recommended broker that deals with adverse credit?

Thank you

scaw2019

Actually recommended but not the estate agents is what i meant

Harry_Hammer

We are in a similar situation, however we are a year further down the line (Discharged Oct 2018!).
Never missed a payment during the IVA with Santander, however when I try to get a decision in principle to allow us to move home, declined...

It's very frustrating to be penalised for a situation which was beyond our control due to us both changing jobs for a decreased salary, but better life balance. IVA's are not all they are supposed to be in my mind....