Hi Ive been in an IVA for 2 years 7 months and pay £100 a month with payplan.
I have offered them £5000 as a full and final settlement to end the IVA early as we are desperate to move due to family issues/conflict with ex's etc and my mum has offered the money on my behalf. They have said it can take 3-6 months to get a meeting with the creditors is this right?
Im in the dark about whether I can obtain another mortgage and if so how long do I have to wait if they agree to the final payment. The IVA is in my name not my wifes and the mortgage is only in my name, we would look to get a new mortgage in both our names. I have had the house valued and there will be around £20K equity just only 85% of the value of the house but payplan are not saying whether this will effect my chances?
One person has said the 20K equity will be 10K as my wife has a legal right to 50% but another said no? Our ideal would be a new mortgage at around 80% LTV and use the £20k as deposit
We were told if we sold the house and paid the IVA off completley out of the funds that the IVA will still show for the next 2 1/2 years so we couldnt even rent as most letting agents wouldnt rent to us so we would be left still no better off.
The IVA has helped us and made us realise our error of our ways living off plastic etc but it seems so difficult to get answers on the simpliest questions I have asked really which is frustrating!
Not sure how but we appeared to have 4 postings for this same questions so I have locked the others and will keep the answers on one thread to avoid confusion and duplication.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Your offer seems more than fair as creditors are unlikely to get an equity release so your IVA would probably have been extended anyway. You will struggle to get a new mortgage unless your existing lender is prepared to move the existing mortgage so if the F&F is agreed it might be an idea to rent out the property until your credit file clears up.
Thanks for the quick reply I wanted to know if the F&F is accepted do they complete the IVA within a set period of time or can it vary, Im not sure if the IVA still shows for the usual 6 years or whether my credit report goes back to 0 once is been finalised? Do you think I have a better chance of getting a new mortgage because I will be applying with my wife next time round?
The iVA should complete soon after the full and final has been accepted. However your credit file will not be clear until 6 years after the IVA commenced regardless of how quickly you clear the IVA. I don't think it matters whether your wife is named or not as you will likely be rejected anyway. If this was a joint application and therefore a joint rejection it could impact adversely on your wife's credit file so be very careful.
When looking for a new mortgage it would be best to use one of the brokers who post here as they would be able to advise properly.
I wanted to know if the F&F is accepted do they complete the IVA within a set period of time or can it vary, Im not sure if the IVA still shows for the usual 6 years or whether my credit report goes back to 0 once is been finalised? Do you think I have a better chance of getting a new mortgage because I will be applying with my wife next time round?
