IVA/CCJ/Defaults mortgage

R1Egg

Hello, I’m looking for advice as I have recently cleared my IVA (includes CCJ) and I have been looking at shared ownership properties.

I have been told by all the finance companies I have contacted that I have to wait till it’s been cleared for 3-6 years.

There must be something out there I can look into. I’m not in a position where I can wait for 3 years and I really want to avoid renting.

any advice is much appreciated.

fatbelly

The IVA will drop off your file 6 years after it was granted, provided it is finished at that point.

Until then you will need to use a specialist broker for a mortgage

ACG

Most mortgage lenders work off the discharge/satisfaction date of the insolvency.
You can obtain a mortgage with less than 3 years discharged, but you will need a large deposit (30-40%). There are only maybe 3-4 lenders that I am aware of and I am not sure if any will do shared ownership. 

kingstreet

I can think of two high street lenders who work to six years from IVA registration date and both accept shared ownership business. Speak to an experienced SO broker. If looking at a particular property/development the HA/RSL will have preferred brokers to "qualify" potential buyers.

ACG

kingstreet said:

I can think of two high street lenders who work to six years from IVA registration date and both accept shared ownership business. Speak to an experienced SO broker. If looking at a particular property/development the HA/RSL will have preferred brokers to "qualify" potential buyers.

Would be interesting to know when the IVA started. I read it as though it would be less than 6 years from registration due to the CCJ still showing. But I suppose I should never assume. 

kingstreet

ACG said:

kingstreet said:

I can think of two high street lenders who work to six years from IVA registration date and both accept shared ownership business. Speak to an experienced SO broker. If looking at a particular property/development the HA/RSL will have preferred brokers to "qualify" potential buyers.

Would be interesting to know when the IVA started. I read it as though it would be less than 6 years from registration due to the CCJ still showing. But I suppose I should never assume. 

I wasn't sure either, but if this benefits any future reader looking for IVA and shared ownership it won't have been wasted.

R1Egg

ACG said:

kingstreet said:

I can think of two high street lenders who work to six years from IVA registration date and both accept shared ownership business. Speak to an experienced SO broker. If looking at a particular property/development the HA/RSL will have preferred brokers to "qualify" potential buyers.

Would be interesting to know when the IVA started. I read it as though it would be less than 6 years from registration due to the CCJ still showing. But I suppose I should never assume. 

IVA started in March 2020, final settlement payment was April 2025.

i have been looking into what I can.


Shared ownership - I would have to wait for Iva to be clear for 3-6 years

Specialist lender - Iva would have had to have been settled at least 1 year and would probably need 20% deposit.

ACG

There are lenders who will do it less than 1 year, but 30% deposit will likely be needed. 

kingstreet

So, by leaving it until March next year you should have a couple of high street options at higher LTVs and lower rates.