Mortgage & Previous IVA

Dizzyblonde545

Hi, I was hoping that someone may have recent experience or any mortgage advisors/brokers could provide me with some insight please. I had an IVA that was registered in October 2012 & my completion certificate was issued in December 2018 after being fully paid (over & above the original as my income rose). All my defaults were registered prior to the registration of my IVA & so my credit report is clean (in theory) & my score pretty good now, although there are a couple of settled payday loans on there.
Myself & my partner are trying to buy a new build. He has excellent credit, completely clean history, we have no affordability issues & a 20% deposit. Earlier in the year we had a Mortgage in Principle from Halifax, Covid delayed us & when we started progressing with the purchase in October we needed a new decision. Our mortgage broker advised us that lots of lenders had withdrawn the number of mortgages available & implemented stricter criteria in the current situation, especially with my history, but we ended up with a fairly competitive deal and MIP from Natwest. She even spoke to them to double check I met their criteria & all seemed to be ok. Yesterday we found out that at final approval stage Natwest declined our application due to my previous 'banking conduct'.  At the time of my IVA I had an overdraft, loan & credit card with Natwest (my main bank at the time & all included in the IVA) & so it appears they have me on an internal 'blacklist' that was flagged at Underwriter stage. I'm really disheartened & a little scared as we will lose the house if we can't complete by December.
I know most of the big banks won't accept anyone with a previous IVA. Are there options out there though? How likely am I to be accepted? Any help is appreciated.
Many thanks.

foxy-stoat

Speak to your broker - they will know where to place you.  I got a mortgage with Halifax after my IVA but thats going back some years.  If you had a DIP with Halifax has the broker not been back in contact with them?

ACG

You would have many more options if you were to hold off until December next year.
At less than 3 years discharged, your options are limited and are either going to be difficult to pass credit score in the current climate or you will need a bigger deposit and expect higher rates - we have one going through at the minute (although they are still in the IVA) and the customers needed a 40% deposit with a rate of around 4%. I suspect due to the limited options at the minute, that is probably along the lines of what you may need. 

Just on a side note, Natwest/RBS do hold an internal record forever and a day. If they have ever had to write off even 1p, it will be an automatic decline. 

Dizzyblonde545

ACG said:

You would have many more options if you were to hold off until December next year.
At less than 3 years discharged, your options are limited and are either going to be difficult to pass credit score in the current climate or you will need a bigger deposit and expect higher rates - we have one going through at the minute (although they are still in the IVA) and the customers needed a 40% deposit with a rate of around 4%. I suspect due to the limited options at the minute, that is probably along the lines of what you may need. 

Just on a side note, Natwest/RBS do hold an internal record forever and a day. If they have ever had to write off even 1p, it will be an automatic decline. 

Thank you. That's really helpful. Interesting to know about Natwest!