Creditors meeting arranged - IVA agreed today

[Jonny G]

Hi All,
I've been reading this forum for just over a week and it's been really encouraging to see all the support.

I have a creditors meeting agreed for 25th March which is a big relief, I really need to sort my debts out and I think this is my only option.

Trouble is i've taken this action too late really as me and my girlfriend have got to the stage where we want to move in together - obviously I want to rent to keep costs down but she really wants to get a mortgage, and this is where my financial past really comes back to haunt me.

I know it's not impossible to get a mortgage with an IVA but the timing couldn't be any worse. Has anyone on here had experience of getting a mortgage in an IVA? Am I going to have to wait over a year and even then ill need a massive deposit and will have much much higher interest rates?

I don't want to give my partner false hopes on if/when we can get a mortgage together, especially as the finance problems are not her fault and she is perfectly reasonable in wanting to get a mortgage!!

Anyones feedback would be gratefully recieved...

Cheers,
Jonny G

[MelanieGiles]

Hi Johnny and welcome to the forum

You will need to find some form of deposit for the property, and this cannot come from funds belonging to you - so unless your girlfriend is in a position to find a 10-15% deposit plans to buy your own property may need to be put on hold until the end of your IVA.

There is nothing wrong with renting a property, and in today's uncertain mortgage marketplace this may well be your best option. Do be careful that this does not affect your relationship with your girlfriend, and remember that bankruptcy proceedings only last for one year - you may have to pay contributions for three years - but these are unlikely to be the full amount of your disposable income.

It might be better seeking advice from a mortgage broker before you commit finally to the IVA.

[Jonny G]

Hi Melanie,

Thanks for your reply.

So is the large deposit the biggest hurdle in getting a mortgage in an IVA would you say? Or is getting approved for one following that going to be just as hard?

As you say its not a great time to get a mortgage at the present time, so I would prefer to rent regardless of my debts...however my girlfriends parents really want her to buy which adds more pressure to an already stressful scenario. Lets just say I dont think she'd hold out 5 years for a mortgage, so if thats more than likely what id need to do then maybe I should quickly reconsider my options.

Thanks,
Jonny G

[MelanieGiles]

There ought to be no problem in finding someone to lend you the money, but you will pay a higher interest rate than someone with a clean credit rating for obvious reasons.

Would your girlfriend be able to fund the deposit on her own, perhaps with assistance from her parents? If so, I would seriously look at buying so long as your share of the mortgage payment does not exceed what you are currently paying out in rent.

[Jonny G]

Thanks for your advice.

I am likely to have any problems renting would you think, im not sure if any agents conduct credit checks for potential tenants?

Thanks,
Jonny G

[Adam Davies]

Hi
Letting agents do conduct credit checks,so if renting after your IVA has been agreed it would be best to be upfront with the agent.
Usually they will ask for a larger deposit and/or a guarantor
Regards

[Jonny G]

Hi Andy,

Thanks for your reply.

Well I had my IVA agreed today so thats one big weight off my mind!

I will have to see now going forward how it goes with letting agents when I look to rent a flat, hopefully I wont get priced out by having to try and find 6 months rent up front.

I will be moving in with my girlfriend though so I would imagine this may put me in a better position than if I was looking for a place on my own?

Cheers for everyone's support, great forum.

Jonny G

[rollercoasterride]

Good news about your IVA. Fingers crossed nopw on your hunt for a place to live. Hope you find somewhere soon and nothings too expensive.

[emma_t]

Great news jonny G, seems like a very popular day for creditor's meeting for the forum, Well done[:D]

[aguise]

Great news Jonny G on having your iva approved.
All the best for your house hunt.

Ang

[debbiw]

Well done Jonny G. Look forward to a debt free future now x

[sblack]

Great news about the IVA approval.
Good luck for the future.

[angela18]

brilliant news

[Shining]

Congratulations on your good news re the IVA, hope all else works out too

[buttercup]

Great News