I currently live in a flat that my girlfriend owns on her own. When my IVA finishes we are planning to move and get a joint mortgage together. Now thankfully, unlike me, my girlfriend has an A1 credit rating. I have been told that initially after my IVA finishes that it will still appear on my credit history that I have been through an IVA and then after 6 years after my IVA started my entire credit history is deleted so that people will not see that I have been through an IVA but also I will have no credit history at all.
My question is from peoples experience how easy / difficult will it be for me and my girlfriend to get a joint mortgage straight after my IVA has finished when my IVA still appears on my credit history and then again after the 6 year period when my credit history is deleted?
The mortgage market is currently very difficult but in the past it was easy to get a mortgage. Things may well change in the future again but many people are finding that even though their credit file is clear after six years they are having to wait another year before obtaining mortgages. This is because many lenders are asking if you have ever been in an IVA and want to wait for two years after discharge before lending.
I'm in a similar situation to you Kopi. I live my GF in a rented property and as soon as my IVA finishes I'm looking to get on the property ladder. I have enquired about a mortgage while in an IVA. This is not impossible but very difficult. An extremly large deposit is required and an increased level of apr for the mortgage. They advised me I should wait till the IVA has cleared but even then, a large deposit 'may' be required because of having no credit!!
If Football was meant to have been played in the air then God would have put Grass in the Sky
I read someone on the forums a while back theres a credit card that will accept people with bad credit but give you a limit of around £100. Will be worth doing some searching on the forum.
Then what you do is say take your normal monthly shopping budget for example and spend it on the credit card, then pay it back IN FULL.
That way you're recording it on your credit file as using credit then paying it back. It's only a start though but every little will help, just remember you dont want to get back into what you started.
fingers wrote:
I read someone on the forums a while back theres a credit card that will accept people with bad credit but give you a limit of around £100. Will be worth doing some searching on the forum.
Then what you do is say take your normal monthly shopping budget for example and spend it on the credit card, then pay it back IN FULL.
That way you're recording it on your credit file as using credit then paying it back. It's only a start though but every little will help, just remember you dont want to get back into what you started.
a vanquis card is the one you mean,just remember not to get carried away with it,although the high apr should put you off. Mobile phone contracts etc all help to show a history of payment. Also its easier to get small amounts of credit for sofa's/catalogues etc than loans until you rebuild a pattern of payments.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I've got a Vanquis card and PD is right, the APR puts you off spending too much! The minimum credit limit they will give you is £250, which they then review after a few months.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
