Mortgage with defaults - mortgage advisor saying they are treated like an IVA?

pixie1980

Just wondering if anyone could give me some advice.

I have three defaults on my credit report that were first registered in 2018.

I have since been making payments to the debt collection agencies so every month they are marked with a D.

My mortgage advisor is saying that because they are “active” they are treated by lenders as if I have an IVA.

I thought that it was the date the default was first registered that would be looked at rather than them being treated as if I am defaulting every month?

She says she has only found one lender that might consider me but they will not take my universal credit payments into account. She is going to go through figures with them tomorrow and see what they would potentially be willing to lend to me.

My deposit will be around £84k and ideally I’m looking at houses around the £220k mark.

I know my credit report isn’t the best but thought that there would be a few options for someone in my position with sub prime lenders.

If anyone could help I’d really appreciate it.

Hoenir

Why not use some of your £84k deposit to clear your existing debts? 

sammyjammy

Can you wait if they are due to be removed this year?

ACG

Find another broker. 
They should not be anywhere near adverse clients. 

So long as you are paying them to a debt a collection agency rather than a DMP company or an IVA firm they are just defaults and the payments will go down as an expense (assuming they will remain). 

pixie1980

Hoenir said:

Why not use some of your £84k deposit to clear your existing debts? 

The deposit is my share of the property I currently live in as I am recently divorced.

fatbelly

Just to be clear, a default in 2018 means that the whole entry drops off at the matching date in 2024.

Why not wait until that process completes and go forward with a clean file?

pixie1980

fatbelly said:

Just to be clear, a default in 2018 means that the whole entry drops off at the matching date in 2024.

Why not wait until that process completes and go forward with a clean file?

In an ideal world that is what I would do. Unfortunately they don’t drop off until December. So realistically not updated on Credit report until January/February 2025. 

I’ve just got divorced and we need to split our assets as quickly as possible really. Not to go into too much detail but my ex is not very stable and I would rather have a clean break asap.

kingstreet

pixie1980 said:

My mortgage advisor is saying that because they are “active” they are treated by lenders as if I have an IVA.

Garbage. An IVA is insolvency and you cannot apply for credit in that state, same as bankruptcy. A default is a default and some lenders will accept them while others won't.