Mortgage & IVA

jo1967

Hi, looking for advice for sister & BIL.

A bit of background - they did a Final IVA nearly two years ago & have been as good as gold since (no choice really!) they have a managed bank account & obviously no credit cards etc. Before the IVA their credit rating was actually good (as in payments were made regularly but minimum only)- but it was overdraft to the max, borrow from one card to pay another & so on until it was all too much.

Their mortgate deal runs out in a couple of months - currently with Bristol & West. Who out there will take on customers like my sister? They missed one mortgage payment last year through an op my BIL had on his knee which became infected & bingo 2 months off from a job he had only been in a couple of months! They got staight onto the mortgage company & the payments were adjusted to reflect the missed one.

One other point to take into consideration - my sis is a childminder & therefore self employed.

Okay thats it! Thanks in advance! :rolleyes:

NeilQuinn

All depends on the loan size in relation to the value of the house & their incomes. If the IVA has finished (and it was well conducted), there's plenty of lenders who'll lend. Also the case with the one missed payment (depending upon how recent).

Need more indormation though.

herbiesjp

Find out what B&W will offer them first.

Then compare to what is out on the market

Do they have up to date copies of their credit files?

MortgagesInc

Agree entirely with herbiesjp - may well be best to stay with Bristol & West- even their standard variable rate mey be better than you could get elsewhere in the current climate!!!

jo1967

Thanks for the replies so far - I am speakingto her later to get some more details.

jo1967

Hi - I have some more info from my sister.

BIL income is £22K, sisters is £8K and she is self employed.

The mortgage is £166K, the house is worth approx £195K (did a search of her style property today).

The missed payment was September 07 & was sorted immediately by adding onto the mortgage & recalculating the repayments. Their IVA was a Final IVA and redundancy was used as their payment which is why it was accepted I think - luckily a new job came along but not as well paid.

They are trying to get info from Bristol & West but their calls are not being returned.

So any companies worth contacting?

herbiesjp

I think their best bet is to get a new deal with B&W for two reasons
1) The adverse credit history they have
2) The income multiples needed

Even taking into account your sister's income they are looking at 5.5 times income and that is assuming she has accounts to verify the income to get the better deals

Also, whilst B&W may not offer a fantastic deal, you will be with a mianstream lender and the rate will hopefully be more competitive than going onto a deal with an adverse lender

You need to push B&W for some deals/figures

mortgage_broker_advisor

Some lenders will not let you move to a new rate if you have arrears on the account. Soo best contact B&W asap in case they say no.

jo1967

I have passed on the advice & appreciate your help!

Thanks.