Post IVA
Obtaining a mortgage after being in an IVA
Many people contact us looking to obtain a mortgage after paying off an Individual Voluntary Arrangement (IVA). The good news is that we may be able to help you!
Every year thousands of people enter into an IVA to deal with problematic debts and as an alternative to filing for personal bankruptcy. Statistics for 2022 show that 87,969 people entered into this type of agreement which is reflected on your credit profile for a period of six years. The positive aspect of finishing an IVA is that you are debt free, so this is one area of the mortgage application that works in your favour.
Our specialist poor credit mortgage system will help you to get onto the property ladder and it will also help to repair your credit profile at the same time. As part of this process, we will work with you and as your credit profile improves, we will look at better products for you to re-mortgage to. This will result in lower rates and payments, but the key factor is to maintain your mortgage payments and pay them on time every month.
Will I pay higher rates of interest on my mortgage after being in an IVA?
The mortgage rate that a person is offered is based on multiple factors, but the simple way to look at this is that the better your credit score the better the rate you can obtain.
For this reason, when you first obtain a mortgage after being in an IVA, the rate may be higher than normal. This is because of the adverse credit history shown on your personal profile, but there is good news on the horizon; the rates will improve! This is due to a combination of factors. If you maintain and do not miss your monthly mortgage payments, your credit history will slowly begin to improve. The second factor is that the older your adverse credit history is, the less of an impact it will have.
Once a bankruptcy or an IVA has reached six years of age it will drop off your credit record. This is a very important anniversary in the credit repair process as with the correct advice and help, you can watch your credit jump from poor/average to excellent. At Anderson Reed we will keep an eye on these factors for you and contact you to advise of these very important dates for your diary. Our re-mortgage process will then find a lower rate of interest for you which will benefit you by lowering your monthly payments, saving you thousands of pounds in the long run.
Contact us by using our short enquiry form or by calling and speaking to our friendly staff.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The answer to this is yes but subject to certain conditions. The team at Anderson Reed have a specialised department to assist you if you have had some past issues with debt. One of the main factors will be whether the debt is now fully paid off and if so, when the debt management plan finished.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you are currently in bankruptcy and not yet discharged, you won’t be able to obtain a mortgage. You will need to wait until you are officially discharged from bankruptcy; normally 12 months after the start date. Once you have been discharged from bankruptcy, you can look at repairing your credit and start to consider the mortgage options that are available to you. We will work with you and consider your best options and if a mortgage can be obtained, this will be an excellent way to start your credit repair process as well.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
It is possible to get a mortgage after having a Debt Relief Order (DRO). A DRO is an official Insolvency solution and in the same way as bankruptcy or an IVA they will impact on your credit rating for six years from the start date. However, with our specialist knowledge and assistance, we will be able to consider your current position and look at our panel of lenders to see who may be able to help you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
Your credit profile will affect the mortgage rate that is offered to you. In simple terms the lender will consider that you are a higher risk in comparison to someone with a perfect A1 credit rating. The good news is that it is possible to get a mortgage with a poor credit record, but much will depend on what the problem is or was at the time. The good news is that our specialist team will always keep an eye on your situation. As soon as you begin to rebuild your credit, we will then look at a re-mortgage with a lower rate of interest. If you maintain your regular monthly mortgage payments you will be able to move onto better products with lower rates of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
A County Court Judgment does have an impact on your credit. However, a mortgage is still possible. Our specialist mortgage lenders will look at your case on an individual basis which is exactly what is needed here. Some CCJ’s can be for a very low amount of money and may have been applied without your knowledge. It will always help if the CCJ has been paid off/settled and each case is individual and must be assessed before we can decide if we can assist.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you do not have much active credit, it can sometimes be hard to obtain new credit agreements, even if you are a wealthy individual with no past credit issues. This is because the lender does not know how you handle credit agreements or regular payments as they have no history to base their decision on. Our team has good knowledge of these unusual situations and will be able to help you with advice and to find the best lender and rate for you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The specialist lenders that we use for people with adverse credit will regularly change the criteria for supplying mortgages to people that have been through bankruptcy. You may need a higher deposit amount if you are looking at obtaining a mortgage shortly after bankruptcy so contact us to discuss your circumstances and we can look at the latest information and guide you through this process.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The answer to this is yes but subject to certain conditions. When buying an investment property, the same basic rules will be in place when applying. Credit rating and deposit will play a part in the decision-making process, but when you complete an IVA your credit rating will be improving massively over the next 12-24 months when the IVA clears from your credit history. At this stage, we will be looking at re-mortgaging you to a better product with a lower rate of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.