Worries at 4am - Getting a mortgage after IVA or DMP

Hello, I can’t sleep and questions in my head just keep going round !!!128577; just wondering if someone can help me with this question Please. I have spoken to Stepchange and they told me to speak to a financial advisor but I have not yet been able to get a reply.
I have 40k of debt to sort out and am going through the process of an IVA - not yet returned the paperwork, before I do I just wanted to see if an IVA or DMP would have similar impacts on my credit file and most importantly affect any future remortgage. I am aware that for the next 6 years I will not be able to get any credit, including remortgaging our existing mortgage when the fixed rate ends in 3 years time, so assume we will then have to stay with our current lender on their standard rate.... but what would happen further down the line once IVA is finished... would lenders ever lend to us again? We have a joint mortgage but IVA is just in my name. I am just wondering whether a DMP would leave me in a better situation in the long run? Any advice very much appreciated. Thank you x

Comments

  • Craig1981
    Craig1981 Posts: 769
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    good morning

    IVA will remain on your file for 6 years, so to all the accounts which will turn into defaults. you wont be able to obtain much credit while in the IVA - but cards like Vanquis/Aqua will help get you back on track if paid in full each month

    Our IVA finished 2 years ago - we still do not have a mortgage, but, credit file is healthy, have loan for my car for work, credit cards with high limits (paid in full each month) etc. we hoping to go through mortgage next year, and i dont see many issues regarding previous IVA

    however, if you have a mortgage and go into an IVA, 6 months from the end you may be required to remortgage to release equity to pay into the IVA - if there is no equity or unable to remortgage, you could pay an extra 12 months

    hopefully someone with a mortgage who has been through an IVA will be along to confirm
  • foxy-stoat
    foxy-stoat Posts: 6,879
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    edited 15 August 2018 at 4:12PM
    Ok, before you do anything, have you done the PPI refund thing yet?

    Is there any chance of down valuing cars, shuffle the balances on 0% interest and try and overpay the debt or have you lost an income somewhere along the line?

    You should be able to get retention products from your existing lender fairly easily without additional borrowing of course - how much equity do you have in your current property?

    Hope you come back and answer the questions, unlike in your other post.
  • Thank you for the reply, and sorry was new to the forum and didn!!!8217;t realise people had come back to me in the previous post, so apologies for that. Have tried PPI and was already on 0% balances with all outgoings trimmed down as much as we physically could, due to a house move to a different area and childcare costs my income has taken a massive hit, and we are seriously struggling. There is a little equity in the property but not very much as only moved a year ago.
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