I've recently had a lump sum IVA accepted which was only possible due to my generous family who have clubbed together to allow me to make a lump sum offer rather than applying for a 5/6 year long IVA. I haven't completed the payment just yet and so don't have a completion certificate but will do in a few months time. Although I've paid the IVA early using the lump sum I realise my credit file will be affected for 6 years.
My question is more hopeful than anything else as I suspect I will need all traces of the IVA to drop off my credit file, but what are the prospects of getting a mortgage once I've had my completion certificate but the IVA/defaults are still on my credit file? The reason I ask is I currently have a mortgage on a flat I purchased just over a year ago, but I may have a job opportunity in the next 6-12 months that would mean relocating to the Manchester area. I would probably sell the flat I have at the moment which could mean between £10-15k of cash that could be used for a deposit.
I'd prefer if I could get back on to the housing ladder rather than rent somewhere but realise that it will be difficult but wanted to check my options. Could I be accepted for a mortgage and if so under what circumstances, a much higher APR? a 50% deposit? Also if I did need a much higher deposit before I could be acceptable could I purchase a shared equity property which would mean my deposit level would be higher due to only buying a 40-50% share of a property?
Is there a set time frame I would have to wait till I can expect to be accepted after getting my completion certificate or is there basically no chance until the 6 years are up and no trace of the IVA exist?
Any advise you can give me would be great appreciated.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
You would definitely struggle to get a new mortgage until the six years are up but have a word with the mortgage experts anyway. Perhaps it may be worth renting out your current flat until your credit file clears up and use the sale proceeds later to get a newer property. If possible you couold even try and reduce the current balance meaning a bigger deposit and more options when your credit file has cleared up.
