Debt within 6 years, yes or no?

Fizz_Bomb

Hi, I began an IVA in 2017, settled in 2020 and it dropped off my credit file in January of this year. My partner and I are now in the process of applying for a mortgage and the broker we’ve approached has said many lenders won’t touch me unless me iva has been completed 3-5 years. I was dubious about this as not heard anything like it before, and when I’ve filled in an online mortgage calculator online it asked “have you had any debt issues in the last six years?” I ticked no and went on to receive a decision in principle. But now I’m worried I should have ticked yes, because technically it only settled 3 years ago? 

Very confused and now worried I’ve given false info. 

Clarity would be much appreciated. 

fatbelly

Your debt issues were solved with the IVA 6.5 years ago. There is no record of it now.

Every entry on your credit file relating to your debts should have been marked with a default that pre-dated the IVA and would have dropped off along with the IVA at the 6-year mark.

It is worth checking your files (all three CRAs) to check that was done

Fizz_Bomb

Thanks that’s great. It’s very confusing, and I’m not sure where the broker has this info from. 

sourcrates

The "clock" if you like, starts ticking from the commencement of a debt solution, so the date your IVA was approved.

Once it hits the 6 year mark, everything is removed from your credit files as the 6 years are up.

So after that point, asking the question “have you had any debt issues in the last six years?” you answered truthfully as No.

There won`t be any record of your IVA now, or the debts that were included in it, only in your creditors internal records would there be any mention of this, as some keep records slightly longer, 7/8 years, rather than 6.

I think the broker may be more confused than you are.