Andrew
If you are in an IVA, this is registered on your credit file. Normally, an IVA will last for a maximum of 5 years. After the IVA is completed, your debts are then called “Satisfied”. You will receive a certificate of satisfaction from your insolvency Practitioner. The record of your IVA will continue to remain on your credit file for 1 additional year (a total of 6 years from the first day of the IVA).
In terms of you getting credit again, it is normal that you will continue to be refused credit for a total of 6 years. In order to minimise the problems, once your IVA is finished, you should send a copy of your certificate of satisfaction to both of the credit agencies (Experian and Equifax). They will then mark against the IVA record that it has been satisfied. It will then be down to the individual lender to decide whether they want to lend to you or not.
As Neverending says, generally, you will be able to take a mortgage with little problem. You should get advice from a specialist broker and you might not bet the best interest rates on the high street. However, the way to overcome this is to take a two year deal and then swap the mortgage again after that.
This may all sound like doom and gloom. However, remember, although you will be living on a tight budget while you are in an IVA, after it has completed you will be able to keep 100% of your disposable income. Instead of buying the things you want on credit, you will be used to living without your disposable income and so you could then start saving to buy the things you want for cash!
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. My book, "IVA, Bankruptcy and Other Debt Solutions" was published in 2006. I have made numerous TV and radio appearances including BBC1 News, BBC News 24, Radio 4 and Wake up to Money.
Visit my blog at:
http://jamesfalla.blogs.iva.co.uk
