Mortgage after IVA

Anna · Joined: 10 Jul 2007 Posts: 5

Hi, I wonder if you would be able to help.

I set up an IVA in January of 2005 and managed to clear it by May 2007 (approx 17 months in total) by offering a lump sum and paid back everything that was owed to my creditors through the agreement.

I am now in the position where my fiancé and I are looking to buy a house. He already has his own property and will have equity to put towards a place together. He has a very good credit rating and has never had any financial problems, however I would like to know the following:

1. Will the fact that I cleared the IVA in a short amount of time go in my favour, or will the fact that I have had an IVA full stop still be detrimental?

2. What are the chances of me getting a mortgage with my fiancé? I never missed an IVA payment, and even before the IVA was set up I always met my payments and there was never any county court judgements against me.

3. Is it too soon to apply considering it is two months since the IVA was settled?

4. Is it a good idea to notify a credit reference agency such as Equifax with written confirmation of the IVA completion/settlement?

Sorry for all of the questions.. I don't seem to be able to find any information relating to my circumstances on the internet and would really appreciate any help and advice you may have.

Many Thanks!! Wink

Maya · Joined: 19 Jun 2007 Posts: 4

Hi,

1) The fact that you completed your IVA ahead of the time agreed it will not clear your credit history sooner. Your credit rating will be cleared in 6 years whether your IVA lasted 1 year or for 5 years.

2) It is possible for you to obtain a mortgage more or less straight away but I would suggest shopping around for quotes from different lenders but do advise them of your completed IVA. You have to remember that your credit file will show that you are still in adverse credit and therefore likely to pay a higher rate in interest it would also be a good idea to check your credit file once you have been discharged from your IVA to make sure your file is updated.

3) It is possible that you maybe applying too soon as you may be subjected to paying a higher interest rate. Other factors that could be in your favour is the amount of deposit that you put down initially, this could stand favourably depending on which lender you find. Another factor being that you will be applying with your fiancé and if you are the second applicant on the mortgage application, this may also help.

4) A final IVA completion report is sent to the Insolvency Unit at the Department of Trade & Industry (DTI), which is then registered with them and then it is their position to contact the credit reference agencies. This should be done automatically from their department. It would also be a good idea to contact your Insolvency Practitioner to find out when the report was sent to the DTI. I would advise you to send a copy to the major credit reference agencies yourself, just so that you know the certificate of due-completion has been sent for your credit record to be updated.

I hope this information helps, but I would suggest discussing the mortgage situation with a mortgage advisor for full details.

If I can be of any further assistance, please feel free to ask.

Many thanks

Maya

Anna · Joined: 10 Jul 2007 Posts: 5

Thanks for your advice... that is very helpful! Razz