Post IVA and remortgage with additional borrowing

MrsChillers

Hi All,

My husband and I both had IVAs which we completed early hooray! Mine was completed 16 months early and in a few weeks it'll be the 6 year anniversary since the start of my IVA (for my husband the IVA has dropped off his credit file completely as it has been 7.5 years since the start date of his and his score with Experian is currently 999 - just stating this for reference). When it is removed from my credit file, (I am counting down the weeks to be honest as this is a major milestone for us and has been a huge journey, we are a lot better with money now and budget, save etc, it feels great to be on top of it and be in control.) we are hoping to apply for additional borrowing on our mortgage as desperately need our house renovating. When we do apply to our mortgage provider, they ask a question which is something like "have you been in an IVA in the past 6 years?" do we say yes or no to this? I know if we say yes, they will decline our application however technically we sort of have haven't we?! Do we need to wait 12 years after the completion date or is it 6 years after the starting date of the IVAs? I don't want to get into trouble with anyone and can't really go to a mortgage broker as we have a brilliant fixed deal with our current mortgage provider.

House renovations are quite big which we have waited over 10 years for now, after the tragic and traumatic loss of a loss family member, we decided we need to do something for us to make our lives better and it'll add value to our house. Single story ext with kitchen and downstairs loo which will support our SEND child with toileting needs too. I know it may look like we are being silly by borrowing again but this is different, our lives are so different now, we have way better jobs, no debts and less outgoings. Things have improved so much and our way of managing money is so much better. The relief to be at this point is amazing, but now I am apprehensive about this new borrowing for the home improvements.

Thanks for reading.

sourcrates

Your IVA starts on the day it is approved by your creditors, the clock starts then.

It all depends on how the questions are worded.

If they ask you:

"Have you entered an IVA in the past 6 years?"

you would answer no, as its been more than 6 years, however if they ask "have you ever entered an IVA?" 

You would have to answer yes.

MrsChillers

Thank you.

I am getting so anxious now about this. I just called our current mortgage provider and he couldn't give me a clear answer to this question and said to wait until I call to make the application to speak to the actual mortgage adviser. He did say if it has been over 6 years it should be ok. I don't know if I feel any better! We can't wait any longer for this work. I'll try not to lose sleep and think of a back up plan. 

MrsChillers

I have spent ages searching the forum. I have read the longer you leave it, after the 6 years starting date of IVA to apply for any kind of credit (I am fully aware debt is bad and we have learnt our lesson but this is for a much needed cause) the easier it will be to be approved for credit. The thing is we just can't wait any longer because of the state of the roof, we need the work doing as soon as possible. I am so scared our mortgage provider is going to say no to our request of additional borrowing this year. My 6 year anniversary is a month away. I know we could look into a secured loan for now for the works and combine when our fixed rate is up next Nov but I would rather avoid this altogether. I guess we won't know until we make the call!