First time buyer, want a mortgage

Riq

Can you be denied an IVA? Since they may look at your case and accuse of purposely getting into that state. Which would be true.

angeluk69_2

no_more_debt_2006 wrote: »

if you want to give me commets then do so but dont be immature and cheeky I dont want immature kid replying to this thanks.!!!!!!

There didn't seem to be anything immature and cheeky about this post, you simply asked for an opinion and thats what you got...

Buying now could cause you major credit problems when you seem to be doing well, why not keep saving and then see what happens in the market at least then you will have a larger deposit to offer.

cleopatra4485

Riq wrote: »

Can you be denied an IVA? Since they may look at your case and accuse of purposely getting into that state. Which would be true.

I was thinking that, thats why I was thinking about paying off a couple of installments first, maybe you would need to pay a few more.

I believe you need to be in more than 15000 in debt, and can prove you can't afford your repayments

but I am thinking that it could work, if I thought through the finer details

Riq

If it was so easy though everyone would be doing it and I have never seen this mentioned on this site before so it makes me think there is an issue which you don't know which would stop it.

Qual123

An IVA will kill your credit rating!!!! People who take an IVA do so because they cant control their own debt and have more than 15K which they cant repay. If you were a bank manager would you look at people with IVA's as ideal? In the current market it is very hard to place people who have Defaults and CCJ's, if you think you will get a mortgage with an IVA then you need help, and lots of it!!!

cleopatra4485

Riq wrote: »

If it was so easy though everyone would be doing it and I have never seen this mentioned on this site before so it makes me think there is an issue which you don't know which would stop it.

People expect everything to just fall on their laps.

When people post saying "I am a first time buyer, have no deposit, bad credit etc" they expect someone to post back an easy option, or a link to a broker that will give you one

I am trying to sort through the options available. I haven't read anywhere that "how you have got in debt" can stop you getting an IVA, but I will be asking questions, and reading Ts&Cs and will post my findings.

I could be nobody has thought of it! Will post on this thread when I know more, I hope this is a loophole

cleopatra4485

Qual123 wrote: »

An IVA will kill your credit rating!!!! People who take an IVA do so because they cant control their own debt and have more than 15K which they cant repay. If you were a bank manager would you look at people with IVA's as ideal? In the current market it is very hard to place people who have Defaults and CCJ's, if you think you will get a mortgage with an IVA then you need help, and lots of it!!!

No not get a mortgage with an IVA.

get a loan to pay the deposit.

get the IVA after you have the mortage, to pay off the loan and any other debt you may have, sometimes you can pay just 40% back of your total debt, but it seems it is usually 75%. I doesn't effect your credit rating, thats why people choose that over bankrupcy

Tiddler_2

cleopatra4485 wrote: »

No thats the thing. IVA's don't

I actually think I am being quite clever

Really??

IVAs need the agreement of 75% of your creditors and so are not a given right!

IVAs do affect your credit file for at least 5 years. As far as I am aware all of your credit agreements are classed as defaulted aswell.

If you can afford the payments when you take out the mortgage, why wouldn't you be able to afford them a couple of months after you have had the mortgage?

When mortgage companies do credit checks they will often look at any credit taken out recently, if it just so happens you have taken out a loan recently then they may ask for proof of a deposit. If you show them a bank account with the deposit going in as a lump sum payment they will often ask where it came from, if they know you have taken out a loan for the deposit they will often decline the mortgage application.

cleopatra4485

Tiddler wrote: »

Really??

IVAs need the agreement of 75% of your creditors and so are not a given right!

IVAs do affect your credit file for at least 5 years. As far as I am aware all of your credit agreements are classed as defaulted aswell.

If you can afford the payments when you take out the mortgage, why wouldn't you be able to afford them a couple of months after you have had the mortgage?

When mortgage companies do credit checks they will often look at any credit taken out recently, if it just so happens you have taken out a loan recently then they may ask for proof of a deposit. If you show them a bank account with the deposit going in as a lump sum payment they will often ask where it came from, if they know you have taken out a loan for the deposit they will often decline the mortgage application.

My credit is ruined anyway so the 5 years thing doesn't bother me.

Paying back a high interest loan would be very tight for a couple of months, thats why I would apply for an IVA after to lower the monthly cost.

What if you paid smaller amounts into a different account for a period of time?

homer_j_3

Your loan repayment would affect your borrowing capacity for a start and depending on your credit history, a deposit of 15-25% may be required.