Damaged for ever?

Coralee · 8 February 2017 at 12:04PM

So we are two payments away from completing our IVA! 29/03/17!! Speaking to mortgage advisors which deal with bad credit won't even touch us for a mortgage w would like a shared ownership mortgage I know the climate isn't great but why do I have to be punished when I've paid the IVA for the last six years never missed a payment did ebpverything they asked surely that should show we can make payment and not miss them we have no store/credit cards as u can't in an IVA! The credit file will drop off in March we both have mobile phone contracts.it just frustrates me as people with bad credit bankruptcy seem to get a mortgage yet we can't which I believe to be unfair as we have paid back our debt, my parents have said that they would go guarantor for us if need to secure the shared ownership mortgage, the option of staying in private rented is running out as we need a 3rd room and the shared ownership is the better option as would be cheeper! Any one got advise for me as I feel angry and upset:(:(

adyj73 · 8 February 2017 at 2:56PM

The mortgage advisor needs to find another job. Totally untrue 100%

foxy-stoat · 8 February 2017 at 3:54PM

I hope you do not think that once your IVA is finished then you are an excellant credit risk - IVA is one step away from being bankrupt. Unless you paid back all your creditors + IP fees then you havent repaid your debt, the remaining debt has been wiped off.

You can 100% get a decent mortgage with enough deposit - I got one with 25% deposit as the broker said I needed that as a minimum.

Good luck and well done for getting this far.

sourcrates · 8 February 2017 at 4:49PM

You should wait until the IVA has dropped off your credit file.

Once this happens, you will become more of a prospect to potential lenders.

You dont have to divulge a past IVA unless specifically asked to do so.

Coralee · 9 February 2017 at 11:20PM

Thanks for advise! I will be making sure the IVA is off the credit score along with the creditors end of March!
I was told that when this happens my credit score will improve, and there is hope, just need to save for deposit which they have said would need to be 5% but better options available if we have bigger deposit!
I'm well aware that I won't have an clean credit score straight away!
i understand that IVA doesn't look good but it should count for something as been paying it for 6 years and never. Defaulted at least we admitted we couldn't carry on as we were and have paid back pretty much all the debt.

DorisTrousers · 10 February 2017 at 10:33AM

You deserve all plaudits available for being debt free in the next couple of months. My own advice would be to use the remaining time between the finish of the IVA and when it drops off the credit file to save up as much as you can so any deposit is larger.

On a different note, and whilst I understand your frustration, it is reasonable to point out that if you had not entered the IVA then you probably would not get a mortgage anyway in the current regulatory climate. If we assume you kept up all your payments on the credit that you had and had a 100% clean payment history, then it is also reasonable to suggest that you would have been in more debt now than you were then. Under the FCA, mortgage providers have to place enormous emphasis on whether mortgage payments are affordable. Clearly, if you have large amounts going out on existing credit then that leaves less available to pay a mortgage with. You are now the complete opposite, you will have none of your income taken up by existing credit commitments, therefore your affordability is that much greater. I realise that other factors such as credit history and equity via way of deposit do play a large part, but at least the affordability issue is not one you should be concerned about.

mwarby · 11 February 2017 at 11:20AM

Maybe worth speaking to the Nationwide, their intermediaries page suggests they are more forgiving towards ex bankrupts

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/general#credit_ref

'Applicants who have been discharged for at least 3 years can be considered'

I spoke to them the other day, they had another rule about current IVAs, but it didn't seem too harsh. I'm approaching 3 years from completion (6 month IVA) and they felt I should be OK (but need to save a deposit of course)

Coralee · 11 February 2017 at 10:31PM

Thank you all for the comments, they have made me feel better so thank you, I've since spoken with a broker who seemed to think we should be ok even with minimum deposit but need to wait till IVA finished, how do u get creditors to remove themselves from credit score?

DCFC79 · 11 February 2017 at 11:38PM

Coralee wrote: »

Thank you all for the comments, they have made me feel better so thank you, I've since spoken with a broker who seemed to think we should be ok even with minimum deposit but need to wait till IVA finished, how do u get creditors to remove themselves from credit [STRIKE]score[/STRIKE] report?

Corrected that for you.

You shouldnt have to call them, they just drop off.

sourcrates · 12 February 2017 at 1:01AM

Coralee wrote: »

how do u get creditors to remove themselves from credit report ?

Defaults automatically drop off your file six years after first been registered, as said above, you don't have to do anything (normally) the entries are automatically removed by the creditor.

iquit · 12 February 2017 at 1:57AM

You may find this helpful for clearing up your credit report http://forums.moneysavingexpert.com/showthread.php?t=677875
All the best.

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Damaged for ever?

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