Partner's IVA - can we get a mortgage?

Brummie123

First time on the site and first post so very grateful for any help.

My partner has an IVA started approximately 2 years ago. We now both have good jobs and are earning a reasonable amount (£60k+ pa between us).

We're currently renting accomadation but are keen to get on the property ladder. Does anyone know if this is possible during the term of the IVA, and if so how best to go about it and any implications?

EC-NICK

Hi Brummie123,

My name is Nick, I'm a Mortgage Broker.

As long as the IVA has been conducted satisfactorily during its term i.e all the payments have been made on time and you have a deposit of about 10-15% there will be lenders who will entertain the loan. Bear in mind though the rates you will get will be a lot higher than if you have clean credit.

The only way to go about it in your situation is to use a mortgage broker as generally high street banks and building societies will not lend money to you with an IVA outstanding.

Hope this is helpfull.

Nick.

Brummie123

Thanks Nick, I thought that could be the case.

I suppose it's a case of weighing up the higher interest rates with the costs incurred of renting until the IVA is cleared then.

Do you happen to know if an IVA can be cleared early?

EC-NICK

Exactly.

Yes they can be cleared early. If you have a lump sum to clear the debt, some IVA companies will look at doing you a deal whereby they will settle on a lower amount than what is outstanding as there is a guarantee of them getting there money rather than risking you default on the payments and them not getting all thier money.

Brummie123

Nick, thanks again. There may be light at the end of the tunnel then!

EC-NICK

Fingers crossed.

herbiesjp

Brummie123 wrote: »

First time on the site and first post so very grateful for any help.

My partner has an IVA started approximately 2 years ago. We now both have good jobs and are earning a reasonable amount (£60k+ pa between us).

We're currently renting accomadation but are keen to get on the property ladder. Does anyone know if this is possible during the term of the IVA, and if so how best to go about it and any implications?

YOu could get away with 10% deposit

A rough idea of rates could be 6.7% for you, so not excessively high - however this will depend on your whole scenario.

Best bet is to make sure your IVA company will allow you to purchase a property, as sometimes they do not like the idea.

What property prices were you looking at?
How much does the IVA cost you each month?

DO you have any other debts?