Applying for a mortgage with IVA and Default

foxy-stoat

Harry_Hammer wrote: »

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....

An IVA is one step back from going Bankrupt. You kept your home and didn't pay back your debt but you have had your debts written off.....you must be winning.

Have you tried other lenders, or is your equity or salaries too low to borrow the amount you want?

Speak to a broker as there will be options.

scaw2019

Totally agree Harry! If i knew then what i know now i wouldn't have done it and i was paying my loan fine before getting the IVA. Good luck with your mortgage application hope you get sorted

scaw2019

Thank you! Yes I agree winning ish..although bad choices i would rather have not done. Salaries have much improved so affordability wise we are great and will never get myself into a debt situation again. Will speak to our broker.

Thanks very much

Harry_Hammer

A better situation yes, but having been tied for 6 years within the IVA, we now find ourselves tied for a further 6 years with some lenders.

Our income allows us to borrow more, we have over 140k equity and we are not looking to increase our monthly outgoings above the amount we were paying during the IVA and also making the IVA payment also.

We are looking around with a broker.

Neutrinno

scaw2019 wrote: »

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

The IVA stays on your credit file for six years from inception of the IVA. It will be removed off your credit file once you are over the six year mark, provided your IVA has completed.

You are not penalised for a further six years, although some lenders criteria may be that they won't lend until six years after discharge for example. This doesn't mean all lenders are the same though. I know currently there are at least 2-3 high street lenders who will lend provided you are over the six year from inception mark.

Harry_Hammer wrote: »

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....

This is why you should use an experienced broker when applying for a mortgage after previous serious adverse credit. A quick check through Santander's criteria and it clearly states they won't lend to previous IVA's and bankrupts.

Harry_Hammer

"This is why you should use an experienced broker when applying for a mortgage after previous serious adverse credit. A quick check through Santander's criteria and it clearly states they won't lend to previous IVA's and bankrupts"

Which I've now done and they have come back with an Agreement in Principle from Santander, because our current mortgage of 12 years is with Santander!

So very confusing and totally unnecessary in my opinion...