Telling parents about IVA

Stacey26 Forumite Posts: 1 Newbie
Hello everyone,

I am about 6 months into my IVA so still a long way to go. The main issue I have at the moment it my husband and I live in a house owned by my parents and they want us to take on the mortgage. My husband is aware of the situation but my parents are not.

I have looked into the possibility of getting a mortgage whilst in the IVA but that doesn’t seem likely at all (plese let me know if anyone else thinks differently.

So, rather than lying to my parents, I feel I need to come clean and tell them my situation, im so ashamed and know they will be disappointed but I domn;t see any other way.

Does anyone have any advice on telling them?

Many thanks for your help.


  • foxy-stoat
    foxy-stoat Forumite Posts: 6,879
    Eighth Anniversary 1,000 Posts Name Dropper
    Best say;
    I owed £XX,XXX on credit cards/loans
    Paying interest of £X,XXX each month
    With minimum payments of £X,XXX
    Would of taken XX amount of years to pay off - if at all

    Now paying £XXX a month for the next 56 months and that is the end of it. You can get a mortgage afterwards.

    They will probably be shocked but there will be no way you could get a mortgage whilst on an IVA....maybe your husband only but they would of asked questions why this would be the case so you should let them know - no point lying about it for the next 4.5 years.

    Honesty would be better.

    How have they got a mortgage and you live there? Regulated Buy To Let, normal BTL not letting the lender know of the family connection, residential mortgage with consent to let - or residential mortgage and the lender doesn't know the situation?

    If your paying rent then they wont be losing out but I can see why they want you to buy it from them to keep things easier for them.
  • PrettyKittyKat
    PrettyKittyKat Forumite Posts: 1,270 Forumite
    As above, honesty and reassurance that you have tackled the situation and entered a legal arrangement whereby you and the creditors are both protected. Reassure then it is the responsible thing to have done.

    Presumably you had a large amount of debt which caused you to enter the IVA so realistically the chance of you getting a mortgage before the IVA with a high level of debt already would have been slim anyway!

    They may be shocked, disappointed, confused, maybe even angry.... but sometimes those responses are due to not understanding what an IVA is! On the other hand they may be upset you didn't tell them before and eager to help you straight away. Either way they will come round and realise you did the right thing in dealing with your situation within a reasonable repayment period and the chance to start again (financially) afterwards
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