Applying for a mortgage with IVA and Default

scaw2019 · 19 January 2020 at 7:47PM

Good evening

Looking for some advice or if there has been any similar situations on applying for a mortgage with an IVA and default. My partner is in his 4th year of his default (£4k) and I have completed 6 years Oct 2019 of an IVA. The IVA was for a Halifax loan. Although the loan was paid off initially fine for the first 5 years, changes in financial circumstances meant that an IVA was a sensible option. Wish i hadn't but i can't change that now.

Having saved up 10% deposit and got my credit rating up again my first mortgage application has been rejected. I have since spoke to a mortgage broker who suggested Halifax but is concerned they won't like the IVA that was from there Halifax loan. I have a decision in principle but obviously that could still get rejected.

I have been told that no banks like ex IVA people and it must be a further 6 years from the date it closed making it a total of 12 years!!

Has anyone had an IVA and applied for a mortgage? Is there life after debt? I feel I'm being penalised for my bad choices even though my Experian rating is excellent.

Any help would be greatly appreciated

Thanks

MovingForwards · 19 January 2020 at 9:50PM

There is life after debt, there are mortgages available after debt.

Post on the mortgage board as that's where the brokers hang out, you want to deal with a whole of market adverse credit mortgage broker.

Not sure why your broker suggested Halifax when you had a debt with them go into an IVA.

https://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=15

scaw2019 · 19 January 2020 at 10:06PM

Thanks for that I'll post on there too. I know i wondered that too, although two brokers had suggested Halifax but didn't fully know my circumstances. I just don't want to get declined again!

Thanks

PrettyKittyKat · 20 January 2020 at 10:02PM

You need to speak to a mortgage broker that is whole of the market whole has experience of past. You need to be completely honest with your circumstances.

Have you checked your credit file to make sure that the IVA has been updated correctly (ie everything taken off now?). Sometimes creditors need a nudge to do this.

Also, if it was only Oct 19 when the 6 year point was reached you are likely to have a limited credit file now - which in itself can be a problem.

scaw2019 · 20 January 2020 at 10:17PM

Hi thanks for that. I've had my credit file updated and all 3 Experian, Equifax and transunion its all updated. However checkmyfile said that the iva will stay on my credit report for 6 years from the closure date and is due to come off 2024. Not sure what's right though.

Thanks

Neutrinno · 31 January 2020 at 12:19PM

scaw2019 wrote: »

Hi thanks for that. I've had my credit file updated and all 3 Experian, Equifax and transunion its all updated. However checkmyfile said that the iva will stay on my credit report for 6 years from the closure date and is due to come off 2024. Not sure what's right though.

Thanks

It's not correct. IVA will stay on for six years from registration provided it's completed.

Get yourself a broker who specializes in adverse credit/IVA mortgages because there is hope on the high street for you. Only certain lenders will penalise you for a further 3-6 years from discharge; there are lenders who will consider provided you are six years from IVA inception.

X7faith · 4 February 2020 at 9:38PM

I work with IVA’s, your credit file will be marked partially satisfied after your IVA has completed, and it will drop off completely 6 years after it completed.
It doesn’t just drop off straight away.

PrettyKittyKat · 4 February 2020 at 9:41PM

X7faith wrote: »

I work with IVA’s, your credit file will be marked partially satisfied after your IVA has completed, and it will drop off completely 6 years after it completed.
It doesn’t just drop off straight away.

This is incorrect. IVA's stay on your credit file for 6 years from START date, not the completion date.

X7faith · 4 February 2020 at 10:08PM

PrettyKittyKat wrote: »

This is incorrect. IVA's stay on your credit file for 6 years from START date, not the completion date.

You obviously didn’t read my first sentence. It’s marked partially satisfied for 6 years after completion and then it drops off. It doesn’t negatively affect you getting credit.
But it doesn’t just drop off after completion.

PrettyKittyKat · 4 February 2020 at 10:51PM

X7faith wrote: »

You obviously didn’t read my first sentence. It’s marked partially satisfied for 6 years after completion and then it drops off. It doesn’t negatively affect you getting credit.
But it doesn’t just drop off after completion.

I did read it correctly - your statement is incorrect.

It is marked as partially satisfied by the creditors when they do their next credit file run after they have received the closure report/final report. Typically most IVAs are 5 years therefore this usually occurs approx 3 months after this (although it can occur before or after). Then once 6 years has passed from the START date of the IVA it 'drops off' the credit file. In reality the credit reference agencies remove the debt because the default will be over 6 years old (hence why the advice is always to make sure any defaults are dated the day the IVA is accepted or prior). It is NOT marked partially satisfied and remain on your credit file with this status for 6 years from the closure date.

Darren_Thomas · 5 February 2020 at 9:21PM

Hi, I had an IVA and have now got a mortgage. It was hard work at first but I think I did have to wait 6 years before my IVA was cleared from my credit. I would not touch and of the big banks if you want to try for a mortgage. I would look into a mortgage advisor they will be able to give you the best advice. Hope this helps.

Applying for a mortgage with IVA and Default

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