IVA private rent :(

jj10131

Hello everyone,

Just after some advise.

So I am on an IVA (since 2019) we've been with the same LA for 5 + years now, when we moved to my current rental they skipped the credit check. Now after 4 years the landlord is serving a section 21 to sell. We're back on the rental market, which is now an extremely competitive market. 

It's VERY likely we're going to have to approach a new LA for a property, as the current one hasn't had any for months. Which means of course a credit check which I am expecting to fail.

My IVA is fairly flexible for an IVA, they're exploring options at the moment given the length and increase in rent, energy, etc are closing but that's a down the line thing.

My main concern is trying to find somewhere to live on an IVA, we've got a good rental history (never missed a payment) But any advise on how best to approach this would be appreciated. Given how competitive things are, the LA's can afford to be much more selective. We do have a PA take-home of around 40k.

Got a few months to find somewhere, or we're basically homeless. Have tried to look for direct rentals too (no LA) but no luck there.

Thank you.

Grumpelstiltskin

Can I ask why did you go for an IVA if you were renting, so no mortgage?

jj10131

Thank you for your reply Grumpelstiltskin

I had some historic debt, and at the time it seemed like the best move as realistically speaking getting a mortgage would have always been years in the future - well beyond the IVA term period in terms of a deposit etc and rebuilding credit.

I'll be honest, the IP didn't discuss much in terms of private rent and I perhaps should have done more research. But, maybe naively we believed what the landlord said when they told us it was 'super long term rent' 

Grumpelstiltskin

Yes you should have done more research, did you contact a debt charity or did you fall for one of the ads. on social media?

The point about having a mortgage is an IVA can be suitable because there is no need to release equity in your property until the end, with no mortgage an IVA is almost always the worse thing you can do.

jj10131

Thank you for your reply.

I did speak to a debt charity initially, they recommended an IVA as an option which led to contacting the company that now manages the IVA. It wasn't on social media no.

The IVA company did explain to me that getting a mortgage within the IVA period would be a no and reassured me that private rent would be fine. Clearly, not the case. It's only in the situation it dawned on me how bad the IVA would look on a new rental check.

We haven't applied for any yet, barely any around. I was just looking for anyone who might of have experience approaching this awkward situation with a LA.

Clearly made a mistake, I'll accept that and I guess we'll do what we can do - if anything. 

Thanks again.

Grumpelstiltskin

Are you sure it was a genuine debt charity you spoke to as it would be   unusual for an IVA to be advised in your circumstance?
 I don't know how much you have paid in fees over the period but if you had done a DMP all that money could have gone towards paying off your debts.
How much was your total debt at the beginning?

jj10131

I don't recall the charity name, sorry. So in answer to that question, I'm not 100% sure. 

I believe the IVA provider is called Debtmovement - it's switched hands, it used to be Swift something. 

On the client area RE debt amount it says
Amount provided by you: £8,360.34
Amount provided by creditor: £5,159.23
Agreed amount: £5,159.23

So I assume 5.1k? 

Yeah, I am aware the IVA was most likely the worse of the options available to me. At the time, I was going through a lot of change at work, depression, etc and I really just took what I could get to stop the phone ringing. Foresight is a great thing.

Grumpelstiltskin

Right you do realize what's happened has happened.

Next a section 21 notice, is it valid?
Pop over to the house buying, selling and renting board and ask them if it's legal ( some aren't)
It doesn't mean you have to move out when it expires. You may have more time than you think to move which will perhaps give you time to sort something out.

jj10131

Thank you again for your reply.

We haven't actually been served the section 21 yet, basically they've given us a pre-warning (we're on good terms with the LA and landlord) and that will be served in May with two months notice.

Will 100% get that checked, we did last time we got served one and that one turned out to be illegal/invalid.

So we do have time, it's the market that's alarming me - a family with one kid, I didn't want to leave it last minute before seeing if there's any way to improve how I look to a LA on an IVA.

Do appreciate your feedback, again thank you.