Mortgage based on credit report

[cb246]

Hi

I don't know if anyone can advise me here but you all seem very knowledgable [:)] so here goes. Myself and husband did a full and final IVA 3 years ago in September. So from September 2007 the F&F was agreed, creditors paid and we owed nothing to anybody else. We had sold our home (we didn't default on the mortgage just credit cards) and since then have lived in rented accommodation with no credit, just a current account each with no overdraft. I have recently thought about getting back on the mortgage ladder but have put it off because a) I thought my credit report would be awful and b) interest rates would be too high because of our past. I have just paid to see my credit report and it is clean and shows no defaults and my credit score is 908 - does this mean when I apply for credit it won't show a previous IVA - I thought this information stayed on your record for 6 years or would a lender see something else that I don't see when looking at my report

Many thanks for any advice you can offer

[kallis3]

I'm surprised it's not on there, but I would also check with the other two agencies as well to see if it's on your record with them.

As far as I am aware the lender sees the same information you do.

[luluj]

It will remain on your credit file for 6 years from the date the IVA was first agreed - so if you say your IVA started & ended in 2007 after a F&F then it should appear on your record until 2013.

I know credit expert shows the IVA under Public Information header - make sure it isn't hidden in the report ! Also recently I was told the scoring doesn't really do any justice to whether or not you would be accepted for a mortgage.
It will mainly depend on how much of a deposit you have - I have recently spoken to two brokers who have said that no-one will lend to anyone with an IVA on their record if they are looking for more than 60% LTV, and even then it will be difficult to gain a very low rate mortgage - we have been quoted a mortgage of £80,000 at 8.5% and this is with a £100,000 deposit (inheritance) - it is possible but not going to be easy !

[plasticdaft]

Check all 3 credit files carefully to make sure the IVA isnt hiding away in a corner and perhaps try to take out a small amount of credit on something to see if you are successful(maybe a cheap contract mobile phone).

Paul

[cb246]

That's great, thank you all for your advice. Gives me something to go on[:)]

[djp]

Hi everyone,
Just found this site after an upsetting meeting at the bank, what a relief, it's very helpful. I have had an IVA for almost 3 years, and currently trying to re-mortgage with same bank, for no extra money. It is called a transfer of equity as want to take sister off mortgage so boyfriend can come on. It is looking unlikely that this will go through due to IVA. I am feeling frustrated as when I took IVA out I was told re-mortgaging would not be a problem, if a joint application with someone with a good credit history. I have also been told that even when IVA paid off, I will always have to disclose it even when IVA paid and no longer on credit file, as it is a question in all mortgage applications. Does anyone know how easy it will be to get a mortgage once IVA paid?
I have also been told by 2 financial advisors that debt management would have been better for me. Is there anything I can do about this as feel I was mis-sold IVA?
Sorry for all the questions, just feeling stressed, and that my IVA was a huge mistake. At the time I was in a bad position and did not get the best advice I could have done.
Many thanks,
Deb

[jpj]

I was granted a remortgage DURING my IVA to offer a full and final (then the financial crisis struck) and they withdrew my mortgage offer and the F and F failed.
It WAS possible to remortgage during an IVA, but obviously the world financially is a very different place now...so you were not necessarily given wrong information, just a victim of the times...Banks will use any excuse not to lend at present unless your sqweaky clean!! (

[Foggy]

Hi Deb. Unfortunately what was good advice some years ago might not be so good at the monent (and vice versa). Regarding disclosing your IVA after it has dropped off your credit records: This is largely a matter of conscience, and the way the question (if asked) is worded. However, if you tell a blatant lie, it could come back and bite you ( again, it all falls down to how they word the question).

I am curious regarding these two financial institutions that claim you were given bad advice .... how did they contact you, and how were they aware of your circumstances?

Fianlly, as jpj says, even the squeaky clean are having to jump through all sorts of hoops to secure a mortgage in these current difficulties.

[kallis3]

It's certainly not possible now as most of us will know!!

Bear in mind as well that this thread is almost a year old and hopefully Deb has managed to sort herself out now.

[ginger3232]

Just to add to what Foggy stated - if you lie on an mortgage application form (whether it be salary or other)you commit a crimminal offence.

If you get found out you not only risk having the application rejected you risk having a criminal record.

Although it is fustrating and can be expensive to start with - the use of a whole market broker and upfront with the truth it a better option all round

[Foggy]

It's certainly not possible now as most of us will know!!

Bear in mind as well that this thread is almost a year old and hopefully Deb has managed to sort herself out now.

Didn't notice that, Jan. Mind you, as you might be able to tell from my apparent dysexia of late, my brain isn't "firing on all cells" at the moment [:I]

[kallis3]

No worries Foggy - I don't always notice that these things are quite old!