IVA& mortgage possibilties- advice

blvckpolar

Hi,
Trying to condense the back story - but I'm hoping someone could share some advice with me. 
I entered an IVA around 4 months ago, my debt was spiraling, and it was at about 16k in the black with no way to clear it. And the only real options open to me were IVA or bankruptcy, and at the time it helped me a great deal, shrunk my debt and made everything affordable. 

However, a few months down the line I've been handed a promotion where i will be taking home a lot more money, and me and my girlfriend have begun to get more serious, and she wants to look at purchasing a home in the next couple of years. With the new money i am on, I am able to start saving for the deposit, even after increasing my monthly IVA payments (she already has savings, and wants to buy ASAP and has a perfect credit score). If i would have had the promotion a few months back i would have never needed the IVA in the first place. 

Im aware my IVA will be on my credit score for the next 6 years regardless of whether i pay it off early or not, so i am in no rush to pay it off, as it will seem pointless to do so. 
But has anyone ever managed to get a mortgage during an IVA? And if so, are there any examples of what the interest rates are like? I have seen that it is possible - just through the odd google search, but they usually want a larger deposit? 

Is it worth even trying for the next 6 years? Or is it better to just pay it off and wait? Only issue is we both still live at home - and there are obviously issues there as we both want our own space. And cant see either of our parents putting up with us for another 5/6 years. If i pay early is there any way to get the IVA removed from my credit file? Either through court or some kind of proceedings if debt is paid in full? 
Thanks in advance, 

Neutrinno

You would be looking at a minimum of around a 30% deposit and most lenders would require the IVA to be satisfied before completion, rates around the 7% mark as a ball park figure. Your options would improve the following years if the IVA was settled early and you can expect normal high street rates once the IVA has completed and is over six years since registration (which would mean 5-10% deposit).

If you do pay the IVA off early, there is no way to remove it early. It will stay on your credit file for the full six years from inception.

blvckpolar

Thanks @Neutrinno
Sorry for late reply, i forgot my log in! 

30% deposit may be possible, and satisfied as in the agreement between me and my IVA company paid off and settled? We both see this as achievable, but less desirable obviously. 
If we did end up getting a mortgage together with higher rates - once the IVA drops off would the rates drop along with it? Or would the mortgage rates stay the same even if the IVA has gone or would we need to remortgage. 

Would it be possible for my girlfriend to get a solo mortgage, and i help her with payments? Is there anyway for her to get a slightly higher mortgage offer, as i am helping her pay it? (aware that with ehr salary alone, the mortgage offer would a lot lower. 

Unfortunately the IVA was recommended to me, and i didnt really understand what i wass getting into, DMP probably wouldve been a much better option, i just dont want my bad credit or IVA to affect my girlfriends finances. 

mwarby

Once your IVA is settled your looking a around 3 years before you get into mainstream mortgages. Many more open up at 6 year point but there are some who will never give you one sadly.A broker might be able to get something earlier, but the interest rate won’t be as competitive

if your girlfriend can get a solo mortgage that would get you in quicker. The obvious downside is that your salary wouldn’t be taken into account, so max mortgage would be lower

Neutrinno

blvckpolar said:

Thanks @Neutrinno
Sorry for late reply, i forgot my log in! 

30% deposit may be possible, and satisfied as in the agreement between me and my IVA company paid off and settled? We both see this as achievable, but less desirable obviously. 
If we did end up getting a mortgage together with higher rates - once the IVA drops off would the rates drop along with it? Or would the mortgage rates stay the same even if the IVA has gone or would we need to remortgage. 

Would it be possible for my girlfriend to get a solo mortgage, and i help her with payments? Is there anyway for her to get a slightly higher mortgage offer, as i am helping her pay it? (aware that with ehr salary alone, the mortgage offer would a lot lower. 

Unfortunately the IVA was recommended to me, and i didnt really understand what i wass getting into, DMP probably wouldve been a much better option, i just dont want my bad credit or IVA to affect my girlfriends finances. 

Yes satisfied as in the agreement has ended. Yes the rates will improve once it has dropped off your credit record, as soon as you are over the six year mark from entering the IVA and it has dropped off your credit file, you'll be back onto high street rates.

Yes your partner could apply for a sole mortgage but your income would not be taken in to account for affordability purposes.