www.iva.co.uk

Hi, I don't know if anyone can help. We completed our Iva in July 2014 and we have a clear credit rating now. We are with northern rock for our mortgage, which obviously is not good as this is interest only. We have quoted for full repayments and due to northern rocks situation it will be about £1000 per month payment on a 134000 mortgage. We will not be able to afford this as it is double my payments. My partner is self employed and I am a teacher on a temporary contract. We have never missed a mortgage payment in all the 18 years we have lived in this house. Would a new mortgage company look at us with these types of work contracts. I have also never been out of work as a teacher as I go from supply to contract etc. It would be good if someone could help as we will get to the end of our mortgage and still owe the same in our retirement.

Hi and welcome to the forum.

I would suggest that you speak to either Ryan or Shaun (details under the ask experts a question link on the left hand side of the road) for some advice as they may be able to help you.

As your IVA in now finished - it there any restriction on paying extra into you mortgage account ? - this would reduce the capital and interest balances, That may be the easier option.
Did you have a payment plan in place, to pay off you interest only mortgage?

But you should speck to a mortgage broker (two on here ) to discuss fully any options you may have.

I agree you should get some advice as you may qualify for a mortgage from the High Street. Hopefully that is the case as the repayments on a new deal may not be too different to the interest only charged by NRAM.

My husband and I are in with NRAM and cannot move our mortgage yet, as our IVA won't drop off till 2018, so we are still on interest only, so we make overpayments every month after the direct debit has gone out.
It's made no difference financially to use as such, as the overpayments are the amount we previously paid into the IVA, and we still budget like we did before.

May be worth doing for now if you can afford to do it.

Hi
Im in exactly the same situation. Iva completed March this year. Completion certificate May this year. Northern Rock interest only mortgage. Owe 138000 and currently paying 520 per month. I've done a bit of shopping around and can get 138000 repayment mortgage for about 650 per month with most high street banks with the current low interest rates. My Iva was a 6 year one so everything has dropped off my credit file and im just in the process of rebuilding my credit score. Hoping to sort my mortgage early next year

Always worth making overpayments as it decreases the loan to value and opens up more and better products.

Andy. You should have a word with a broker like Shaun Vickery as a low credit score may not stop you from getting a new mortgage now.

To be honest. I think my credit score is probably quite good. Salary 47k with no debts. Obtained a Luma credit card spending little each month and paying off in full. Mobile contract and usual household direct debits. But im just a little nervous of applying for mortgage yet incase its declined and will tarnish my credit score. I just dont know if it's too soon after Iva to start applying

There is no harm in looking as lenders can do a 'soft' search which I believe does not leave a footprint on your credit file. If you can move to the High Street now and get away from NRAM it would be a big bonus.

Drop Shaun a line and he can advise better than I but you might be pleasantly surprised. Experienced brokers like Shaun know where to place the mortgages and I know he recently got an ex IVA client a ten year fix at around 3%.

Thanks for that. Will speek to the Mrs and let you all know

Andy, different lenders have differing views regarding past IVA's: Some will forgive easily, whilst a few will never lend to an ex IVA'er! You really do need to know who to ask and a broker with experience in the adverse credit industry can be worth their weight in gold! Some here have been lucky and got accepted on a walk in application, some have been ( in my opinion, dangerously) "economical" with the facts, and a few, trying the "scattergun approach" have re-damaged their credit records.

Have a word with Ryan and / or Shaun -- after all, it will only cost a phone call.

Definatly dont want to damage my credit score so will speak to one or both of them before doing anything.
Cheers guys

It's certainly worth looking at as the rate you are probably paying with NRAM is unlikely to be competitive. As Foggy says, there are lenders who could consider an application but it is important to get any preparatory work done prior to making an application. This is what an expert will be able to help you with.