Hi ya my name is Jennie,me and my husband have had a generous offer from a family member to pay off our outstanding debt with the IVA early,in order to help us get on the house ladder as we desperately want a shared ownership home,but is it likely that we could get the mortgage before the 6 years is up with a generous deposit? We would be very grateful for thoughts
I cut n paste this from another post. Think twice about shared wonership I have testimony from others the big biggest mistake they have ever ever made. A nice new shiney overpriced shoe box which has a very slick way of getting you in and the ones they can't flog go to housing association and then your shafted. I bought a brand new one a long time ago and at first nice...then bad very very bad. I got out while I could and took the hit. I went back there a year ago, just to see OMG a war zone more like
Anyway just an observation you may like that
There’s some wistful posts about a 15% deposit an all's ok.. But in reality if you've got an IVA you are looking at 50% deposit on your CR satisfied or not, won’t make a jot of difference and you will probably have to pay a higher interest rate on the sub prime market (that's you n was me) The high street lenders won't touch you. And maybe Ryan can help you, remember if you are paying over the odds now, you may be well stuck with that deal!
And when you think about it of course they’re going ask for that much deposit, you’d be lucky to get a mortgage with a good CR at 15% and with the tough new rules, interest only mortgages will only for the very few. (ie you’re going to have to prove you have a mechanism that you can pay it back at end of term and saying it’ll go up in value, won’t cut it) You could try life assurance and convince them you’ll get run over by a bus, although such will be the power of the banks by then they'll probably hire the bus and have you run over anyway!
I’m afraid it capital repayment really and to be fair that’s a sound idea, always was.
An IVA in many ways lasts for six years and possibly beyond, as some mortgages forms ask whether you have ever entered into an agreement with your creditors, ohhh the moral dilemma!
Just google "getting a mortgage in an IVA" sort of bottomit out for you
Have a word with Ryan, our mortgage expert, who posts on here. He has helped several members obtain a mortgage, some who still have a rubbish credit rating.
Hi, with all products like a mortgage it is likely someone will lend but there may be a high interest rate if there is a perceived higher risk. You should seek advice from an IFA though as this is a big decision.
As advised by Sponge, look into shared ownership carefully, my first property was a shared owenership property and it did help me get on the ladder. It was an old property and there were no hidden nasties other than we had to pay off the 30% which was valued at the date we paid it back (i.e. the future) and not when we bought it. I think the 30% was about £15k when we bought it and £27 when we had to pay it back. But my 70% had also increase.
As with the mortgage and expert advice, seek a really good solicitor and be prepared to pay something on account for them to tell you all the pitfalls.
Thank you Sam,I will look into IFA.we understand what you are saying about the shared ownership been looking into it,we are hoping to never have to move once settled.
Ryan comes highly recommended and will give you honest advice sp that you know where you stand...his contact details can be found under the experts section
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
