Back again with another IVA mortgage question

Following on from my previous post, IVA ends next month, will be off credit file shortly after hopefully. Looking to remortgage or move when fixed rate ends Oct 2024. 

Previous advice was I should be okay, maybe even high street rates, however when I’m looking at options mortgage providers are talking about lending 1,3,6 years after discharge. So is that when it is complete and drops off credit file? So potentially waiting another number of years after it’s removed. 

For example currently with Aldermore and they have been great, would happily stay with them and have never missed a payment so 10 plus years solid history with them. I have seen posts on here people saying that they have got mortgages with them straight after it dropping off their credit file yet their lending criteria says they only lend 3 years post discharge from IVA. It’s a bit confusing I’ll be honest. 

I know I need to wait and speak to a broker nearer the time and one confident in placing adverse, I think I just like to be prepared and know what’s what. Going round in circles looking at lending criteria but not found any that mentions lending immediately after IVA completed. 

Thanks for any support. 

Comments

  • kingstreet
    kingstreet Posts: 38,600
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    I can only reiterate what I said last time. There are lenders who work from date of registration and not date of discharge. Here is the criteria of one of them;-

    Bankruptcy/IVA

    It is not acceptable to lend where any applicant is currently bankrupt or subject to a Debt Relief Order (DRO) and/or Individual Voluntary Arrangement (IVA) however, lending can be considered provided any bankruptcy, DRO or IVA was registered more than 6 years ago from the date of submission (and hence no longer appears on the credit reference bureau information).

    And another;-
    Bankruptcies/IVA/Debt Management

    The Credit History question should be answered as ‘Yes' if any customer has had a Bankruptcy / IVA / Debt Management Arrangement / Debt Relief Order or made a formal or informal Arrangement/Order with a debt management provider/creditor to agree a revised payment less than the contractual monthly payment, which was:

    Registered within the last 6yrs (whether now completed or not)

    Or

    Is still outstanding (whenever this was registered)

    If a Bankruptcy / IVA / Debt Management Arrangement / Debt Relief Order or formal or informal Arrangement/Order with a debt management provider/creditor to agree a revised payment less than the contractual monthly payment was registered over 6yrs ago and is no long outstanding, the question can be answered as ‘No’.


    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 23,611
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    Of all the high street lenders, there are only 2 I can think of who work from the registration date. If you are doing the research yourself, you need to go and check all of the lenders not just the odd one as its unlikely you will find them like that. 

    If the IVA is finishing next month, speak to a broker now. You have a month to check your credit reports are accurate and get everything together. 

    However, the high street options only really become an option if they were not included in the IVA. If they were, then you are unlikely to get a high street mortgage for 3-6 years. 


    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks both. I guess I was thinking about Aldermore and confusion about people getting mortgages straight after completing an IVA but their criteria saying 3 years, but when I’ve looked back it was a few years ago so could just be that their criteria has changed. 
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