Advice on getting a mortgage after an IVA

Me and my partner are looking at applying for a mortgage at the end of the year to buy our first house. The problem is although my credit score is near perfect, my partners isn't after an IVA in 2015. This IVA was paid off in 2017 and things are now moving smoothly but I am aware that it will be on file for 6 years regardless of it being paid off early. To improve the score, we applied for a credit card specific for improving bad ratings however, it was declined.

My question is: is it likely that we will be accepted for a mortgage considering my score is good and we'll have a decent deposit or will lenders still focus on my partners past IVA history? By the end of the year when we start looking officially, it will have been on record for 3 years, would this make a difference?

Any tips on how we're supposed to improve the score if we're unable to apply for credit would be much appreciated! It seems impossible!

Thanks :)

Comments

  • foxy-stoat
    foxy-stoat Posts: 6,879
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    Score is not important - history is.
    If you have a 25% deposit then I would speak to a broker who has placed an ex-iva applicant recently - you may need to wait for a couple of years before getting reasonable terms.
  • Next month I am 6 years post IVA. Despite my now husband having excellent credit, and me having good income etc- no high street mortgage lender would touch me until 6 years after IVA was entered.
    There are excellent adverse credit brokers out there, however the terms are likely to be very ridiculous with extortiate interest rates/very high deposits needed.
    May be worth considering taking a mortgage in just your name for interim??
  • Neutrinno
    Neutrinno Posts: 310
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    kefaul wrote: »
    Me and my partner are looking at applying for a mortgage at the end of the year to buy our first house. The problem is although my credit score is near perfect, my partners isn't after an IVA in 2015. This IVA was paid off in 2017 and things are now moving smoothly but I am aware that it will be on file for 6 years regardless of it being paid off early. To improve the score, we applied for a credit card specific for improving bad ratings however, it was declined.

    My question is: is it likely that we will be accepted for a mortgage considering my score is good and we'll have a decent deposit or will lenders still focus on my partners past IVA history? By the end of the year when we start looking officially, it will have been on record for 3 years, would this make a difference?

    Any tips on how we're supposed to improve the score if we're unable to apply for credit would be much appreciated! It seems impossible!

    Thanks :)

    Yes lenders will 100% look at his credit history and take into account the IVA. With an IVA being on his credit report from 2015 + 2 year discharge (at the time of applying), it is very unlikely any high street lenders will consider you. That does not mean there are no options available though, you will likely need around a 25% deposit for sub prime lenders to consider you.

    Seek a broker who regularly deals with adverse credit/ex IVA mortgages.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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