Mortgage after IVA

bigmouse · 16 May 2012 at 7:16PM

Started my IVA Jan 2006 and received certificate of completion Feb 2011.
Having had some PPI claims upheld and saving like mad, me and my wife now have a 10% deposit on a purchase price of £150000 house.
Just got off the phone from London & Country Mortgage Brokers who told me that there are currently no mortgage providers that they can access who will even consider someone who has had an IVA completed in the last 3 years!!!!!!!!!
Does anyone out there know if this is true before we apply somewhere that doesn't use brokers and thereby harm our credit score by the credit search being logged???????

Foxy-Stoat_3 · 17 May 2012 at 4:51PM

Maybe there are no lenders willing to lend with such a small deposit.

I got a mortgage last year with 25% deposit, which was pretty much the minimum amount required before they would even consider it.

I guess you need to save a bit more before getting a mortgage.

By the looks of their website they are not whole of market brokers, best ask them to make sure.

Swervey · 21 May 2012 at 5:39PM

Hi

I'm in the same situation as you. I entered into an IVA in 2005 and completed last year. Currently no major lender, Halifax, natwest, Santander etc will not accept any mortgage offer from applicators who have had an IVA EVER! Is was a big shock to me as I was advised (from a number of people) that after 6 years any reference of an IVA is cleared from my credit file. I checked on all major credit reference agencies and made sure my file was up to date. My file on all of them is now clear of any defaults or references to the IVA but still I was turned down on 2 occasions for a mortgage. Apparently there is a insolvency search (in addition to a credit score search) that holds information on bankruptcy and IVAs that companies use, my information will be held here forever. There are companies who will lend to you if you've had an IVA but only if it's been 3 sometimes 6 years since the IVA has finished.

I'm currently speaking to an advisor who is looking into whether or not anyone will lend to me and I'm due to hear back from him tomorrow. I shall share my info when I get it.

I would also like to speak with the person in the other forums about the IVA.

Good luck

giblet10 · 21 May 2012 at 5:50PM

Swervey,

There are some on here who have stated they did get a mortgage after their IVA was removed from their credit files.

Can you elaborate on how much you wanted to borrow against your deposit?

I haven't heard of this life long insolvency database although I'm sure an expert will comment on that..

One thing is for sure though, the majority, if not all, of the high street lenders ask you to tick a box declaring if you've had an IVA (ever) - ticking it will almost certainly lead to a decline. Not ticking it if you have in fact had an IVA would be fraud I guess - best case would be a CIFAS, worst case would be time in the big house..

Speak to a whole of mortgage broker.

Foxy-Stoat_3 · 22 May 2012 at 9:37AM

Our mortgage is with Halifax and all questions were answeted truthfully.

Our deposit had to be 22%

Nickc_2 · 23 May 2012 at 11:55AM

Hi - I will be 6 years post IVA in July 2012. This is when the defaults and IVA info disappear from my credit file. However I need to find out which lenders do not ask about if you have EVER had an IVA previously. We have a decent deposit but will still need about 85% LTV when we are ready to apply. PLease help. Nick

BillyWilly_2 · 27 May 2012 at 3:35PM

I have been offered a mortgage through a fairly new bank called Aldemore Bank. I needed to provide a clean credit report (took a bit of doing but all CRA updated after a couple of phones calls), proof of earnings and 20% deposit.

They seem to look at your current status predominantly rather than penalise you for past failures.

Give them a call and good luck.

morrison23 · 18 June 2012 at 5:28PM

Hi
I finished paying off my IVA earlier in the year (hooray) :j
now me and the mrs wants a mortgage. i have recently joined experian and it says i have a good credit score.
how long do you think we should wait until we ask for a mortgage?
i understand that we would need a deposit of around 20%??

What makes it more frustrating is that my colleague has a poor credit rating and earns less got approved for a mortgage last week.

Thanks in advance for your help :beer:

Foxy-Stoat_3 · 20 June 2012 at 11:51AM

morrison23 wrote: »

Hi
I finished paying off my IVA earlier in the year (hooray) :j
now me and the mrs wants a mortgage. i have recently joined experian and it says i have a good credit score.
how long do you think we should wait until we ask for a mortgage?
i understand that we would need a deposit of around 20%??

What makes it more frustrating is that my colleague has a poor credit rating and earns less got approved for a mortgage last week.

Thanks in advance for your help :beer:

Well done for finishing the payments....you need to wait for the completion certificate though.

Credit scores from Experian or any other company are meaningless.

Read the rebuilding credit score thread before applying for any credit/mortgage, you would need to wait for all your defaults to drop off your credit file first, and maybe take out a Vanquish card and be a good boy/girl for 6 months using that.

You will need to have a LTV of AT LEAST 20% plus fees, legal costs, broker fees so I would say 20% plus £1500 for legals plus £1500 for broker/application/search fees plus £250 survey....you will need this in cash in the bank before talking to a whole of market broker or looking for a house to buy.

Have you seen your colleague's credit report? He may have debts but meeting the minimum payments each month....strangely if you owe thousands of pounds, paying the min 5% each month and not actually reducing the balance and probably borrowing off one credit card to pay another and never missed a payment but firmly at the top/middle of the debt spiral then they are more likely to get a mortgage over someone who has zero debt, zero credit history and a year after the IVA finished. Go figure!

BillyWilly_2 · 20 June 2012 at 9:32PM

Morrison23,

Foxy has offered some sound advise here although I would slightly disagree that your credit score is meaningless. The score part is possibly meaningless however your credit rating means everything.

I made my final payment march 2011 and received my completion cert not long after. Sent it off to experian etc and they updated their records. Had to wait 12 months for all the default accounts and IVA to drop off my file (may need to pester them a bit) at which point I felt I was in the clear. It is such a nice feeling.

Anyway, once my credit file was clear I saw a whole of the market broker who found me a deal with Aldmore bank putting down 20%. We move in in 4 weeks.

I have seen so many negative posts about getting a mortgage after an IVA but I can tell you now there is light at the end of the tunnel.

Hang in there and good luck. Hope this helps.

Mortgage after IVA

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