I would like to know how to obtain a mortgage after being in an IVA.
Please could you advise me of my chances of getting a mortgage after my IVA drops off my credit file.
Facts are as follows.
Credit file is clean - only IVA and lack of credit history an issue, I have had an O/D of £1300-1500 which I have not breached once for the last 4 years and is showing as green
Last IVA payment goes 15th Feb (IVA was extended by 2 months at my request).
IVA goes from credit file 15th Nov 2013
Want to buy £270k house, will have 20-25% deposit.
Want to have Mortgage in place Jan 2014.
Should I apply for a Vanquis card now, or is that a dead give away I had credit issues?
You would need to seek advice from an IFA with experience of people who have had historical financial difficulties. In reality, it may take some time before you are acceptable to the majority of lenders at a competitive rate of interest.
Welcome to the forum. We have a mortgage broker on the forum, Ryan, who has been successful in helping a number of members gain mortgages after their IVAs. You can find his contact details on the left under "meet the experts" field.....everyone is different, so Ryan will be best placed to give you ideas on your proposed deposit level etc.
let us know how you get on.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
this a cut n paste from a post I made yesterday and it sort of cuts to the chase!
"Should I apply for a Vanquis card now, or is that a dead give away I had credit issues?" I'm glad you spotted it to I have been banging my drum about this, only some posters are burrying their head in the sands eager to get their hands on some credit without wanting to know the damage it may do - anyway mortgages been quite a hot topic in the last few days and this is a sort of a sumation, but you can decide it's weight once you've done some research
Well this is the tough choice at six years you CR will clear you of all trace of your IVA under statute law including defaults.
You'll have to check all three CR's and there will be some work to be done on your part to make sure it is clean
Once that has happened you can then apply for high street lending rates as I have seen on here with only 5%-10% deposit.
Slight little catch you maybe asked if you have entered into an agreement with your creditors. Some ask some don't
Simply put, say yes and you'll get turned down, say no and there's a good chance you'll get accepted (on the basis that all other condition were going to be a yes)
Naturally probably best to apply to those that were not a previous creditor.
There has been debate how you tick that box. The authour of this site Andy Davie has suggested brokers maybe able to get round this question all together.
You can get get a mortgage whilst in an IVA (cc or not your in it, for six years)but your looking at a very heavy deposit and above, high street interest rates.
But you may get stuck with this sub prime mortgage as it may tell other lenders on CR you've had a problem well after your IVA has long gone, lenders are very fickle even the wrong post code will affect the decision on getting a credit card and that's with a good credit rating.
There's a broker on here that's has obtained mortgages for those both in and out of IVA's Ryan but think real hard whilst in an IVA you don't get stuck with something you don't like later on.
The fiscal paradox is that after six years you'll see you credit rating shoot through roof on the axe of six years. There's good reason to if you've run your IVA true, then you get many green ticks on your CR and many of those, and with just a few searches equal many brownie points.
You can just google mortgage whilst in an IVA give you a feel of things.
For me I waited till my six years was done and I'm an advocate of not applying for any credit whilst in an IVA, which has been reflected by some of the other experts on this site, for good reason!
Hi, i completed iva in January this year and have had two mortgage in principals offered to me, they are only in principal and we are looking at submitting the full application at the end or march beginning or April so will let you know how we get on, hopefully it will help you when you come to apply next year.
Just browsing the thread, and this is very interesting! I just had an application turned down as somehow they found that I had an IVA in the past (I completed it in 2010 so it should be well gone by now!)
Anyone know where they would have seen a record of this? Nothing showing on Equifax or Experian
Will I ever be free of my mistakes I made as a teenager??
Hi Clareyfarey. Was the application with a former creditor or with a creditor in the same group of companies as one of your former creditors ? If so, they do keep records for 7 years following the end of any relationship with you ( which, in the case of a creditor in the IVA would be the end date of said IVA).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for that Foggy. They're not connected as far as I am aware, but they all seem to be linked together in some way! 7 years after??? Blimey, that'll be 2017, so they will hate me til then, and I will have been 'punished' for young stupidity for 12 years Bad times!
I am looking at going with a Building Society that are more, shall we say, 'flexible' in terms of history, so fingers crossed. Otherwise I am going to have to go down the sub prime route, and that's not ideal.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
they do keep records for 7 years following the end of any relationship with you ( which, in the case of a creditor in the IVA would be the end date of said IVA).
Old defaulted customer accounts would show up at underwriting going back to the year dot for any defaults at this one bank I worked at.
I would envisage something similar elsewhere too.
Probably best to go to a creditor that was never a creditor of yours, which probably means a building society, or may be the new TSB bank that's about to be introduced [:D]
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
You could always have a word with Ryan or Shaun, who are mortgage brokers posting on here -- I gather they have had a measure of success helping place mortgage applications.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Bad times!
