Failed IVA impact on mortgage application

[Traceycaw]

Hi,

I am new on here. Just looking to see if anyone can help with my problem.

In January 2005 I started an IVA. I had no choice, my ex partner had become very violent, and whilst I managed to get the police to help make sure he stayed away form me and my daughter, all credit held was in my name. He was being paid by cash, but not declaring this properly (I found out later). The credit was made up of store cards, credit card, and loan. I was advised by the IVA company that legally I was responsible for all repayments, and as I could not afford this, an IVA was deemed the best route.

In November 2007 I had to leave my job. I was travelling well over 2 hours each way, and was not able to manage this with my daughter. I did not claim any benefits. The IVA company were helpful at first, and I continued to look for work. I did find a job to start in Jan 2008, but in Jan 2008 they made their staff redundant (poor xmas sales) and I never got to start the job. I advised the IVA company, and continued to search for a job.

In March 2008 I was advised by the IVA co that they were having a meeting to determine if the IVA could continue. I still carried on looking for work, and kept them updated. There seemed to be a bit of a breakdown of communication at this point, as my calls were not being returned.

Then in July 2008 I received a letter saying that they felt the IVA could not continue, and had issued a certificate of non compliance. They also advised that the creditors could contact me directly for payments moving forward. They also sent me a breakdown of costs. I had paid £7530, and the IVA co took £6725. A total of £881 was paid to the creditors.

When I called the IVA Co I was advised to look on a government website which explained how IVA's work.

I had by now found full time work.

NOt one of the creditors has ever contacted me.

Anyway, I met someone new, he bought a house, we moved in, got married etc etc.

We have now had an offer on the house, and are applying for a mortgage together. The mortgage company is Santander, and on their website it says if you have ever had an IVA you will not get a mortgage. Is this correct? I have been married for over 3 years now, have no debt, and have never been contacted by a creditor. Will they search my maiden name? Not really sure what to do about this, and other websites seem to give conflicting information. Has anyone else had this problem?

Thanks x

[Never-In-Doubt]

Re: Failed IVA impact on mortgage application

Hi,

I am new on here. Just looking to see if anyone can help with my problem.

In January 2005 I started an IVA. I had no choice, my ex partner had become very violent, and whilst I managed to get the police to help make sure he stayed away form me and my daughter, all credit held was in my name. He was being paid by cash, but not declaring this properly (I found out later). The credit was made up of store cards, credit card, and loan. I was advised by the IVA company that legally I was responsible for all repayments, and as I could not afford this, an IVA was deemed the best route.

In November 2007 I had to leave my job. I was travelling well over 2 hours each way, and was not able to manage this with my daughter. I did not claim any benefits. The IVA company were helpful at first, and I continued to look for work. I did find a job to start in Jan 2008, but in Jan 2008 they made their staff redundant (poor xmas sales) and I never got to start the job. I advised the IVA company, and continued to search for a job.

In March 2008 I was advised by the IVA co that they were having a meeting to determine if the IVA could continue. I still carried on looking for work, and kept them updated. There seemed to be a bit of a breakdown of communication at this point, as my calls were not being returned.

Then in July 2008 I received a letter saying that they felt the IVA could not continue, and had issued a certificate of non compliance. They also advised that the creditors could contact me directly for payments moving forward. They also sent me a breakdown of costs. I had paid £7530, and the IVA co took £6725. A total of £881 was paid to the creditors.

When I called the IVA Co I was advised to look on a government website which explained how IVA's work.

I had by now found full time work.

NOt one of the creditors has ever contacted me.

Anyway, I met someone new, he bought a house, we moved in, got married etc etc.

We have now had an offer on the house, and are applying for a mortgage together. The mortgage company is Santander, and on their website it says if you have ever had an IVA you will not get a mortgage. Is this correct? I have been married for over 3 years now, have no debt, and have never been contacted by a creditor. Will they search my maiden name? Not really sure what to do about this, and other websites seem to give conflicting information. Has anyone else had this problem?

Thanks x

Hiya

Ok quite easy to get around, ONLY if you've not got a link to the old address that was IVA active and have lived where you do for the last 3 years you might well be ok.

The way it works is that they will first check links which if it links another name at the old linked address would result in a decline and no doubt a CIFAS marker so be careful.

If however you have no links to the old address on any of your files, and also do not currently use the same name as before when you were on the IVA you may be ok.

Thing is they do not search credit files for IVA's - they check Trust Online - check for yourself, but will be wasted cash as it'll show there as you did do a IVA.

Can your partner not apply in his sole name?

[Traceycaw]

Re: Failed IVA impact on mortgage application

Hiya

Ok quite easy to get around, ONLY if you've not got a link to the old address that was IVA active and have lived where you do for the last 3 years you might well be ok.

The way it works is that they will first check links which if it links another name at the old linked address would result in a decline and no doubt a CIFAS marker so be careful.

If however you have no links to the old address on any of your files, and also do not currently use the same name as before when you were on the IVA you may be ok.

Thing is they do not search credit files for IVA's - they check Trust Online - check for yourself, but will be wasted cash as it'll show there as you did do a IVA.

Can your partner not apply in his sole name?

We have lived here for 4 years, and it was to this address that the IVA Co sent the certificate of non compliance. This was all done under my maiden name.

My experian credit report only has my married name (set up a few months ago) I have not added my maiden name as was a bit worried about documenting this online.

My husband has taken a huge cut in hours at work over the past year and half as he has been the main care provider for our 2 children. As he is self employed, the accounts have dropped so we need to use my income too.

[Never-In-Doubt]

Re: Failed IVA impact on mortgage application

Ouch, well not going to be good news I'm afraid - pointless trying to fiddle the system, the moment they do a search at your address they'll know that Miss X is the same as Mrs Y.

My point being, you are best admitting it. They cannot refuse a mortgage solely based on you having had an IVA in the past, they can however refuse if the IVA is live and / or failed within the IVA period. So assume you started the IVA in 2004 - if it failed anytime before 2010 then there will be no link as such. If however you started it in 2007 then it'll remain (as live/completed/failed) until 2013.

I would not suggest you lie as due to the link to your current address as being the IVA address then they'll know straight away that you and the other named person are one and the same - be honest and see if that helps or wait until after 6yrs have passed since the IVA failed at which point all trace will vanish from most records other than Trust Online which is the general home of all formal processes (i.e. BR/IVA etc) plus after a complete 6yrs a mortgage company CANNOT refuse you based on having previously participating in an IVA regardless of whether it is completed or failed.

Hope this makes sense...?

[Never-In-Doubt]

Re: Failed IVA impact on mortgage application

* glad to see you replied to my PM

[Traceycaw]

Re: Failed IVA impact on mortgage application

Ouch, well not going to be good news I'm afraid - pointless trying to fiddle the system, the moment they do a search at your address they'll know that Miss X is the same as Mrs Y.

My point being, you are best admitting it. They cannot refuse a mortgage solely based on you having had an IVA in the past, they can however refuse if the IVA is live and / or failed within the IVA period. So assume you started the IVA in 2004 - if it failed anytime before 2010 then there will be no link as such. If however you started it in 2007 then it'll remain (as live/completed/failed) until 2013.

I would not suggest you lie as due to the link to your current address as being the IVA address then they'll know straight away that you and the other named person are one and the same - be honest and see if that helps or wait until after 6yrs have passed since the IVA failed at which point all trace will vanish from most records other than Trust Online which is the general home of all formal processes (i.e. BR/IVA etc) plus after a complete 6yrs a mortgage company CANNOT refuse you based on having previously participating in an IVA regardless of whether it is completed or failed.

Hope this makes sense...?

Thank you so much. We are due to go through the mortgage application on Monday, and although we now know we probably wont get one through Santander, at least we dont spend the rest if the weekend worrying about it! Wo do have a contact (Financial Advisor) who said that he could probably help us, so I think we will go down this route. If not, we can always rent for a while!

I guess there are companies that can get mortgages for people with bad credit..do you know of any?

[Never-In-Doubt]

Re: Failed IVA impact on mortgage application

I wouldn't use such a firm, wait until 6yrs have passed - it'll be many tens of thousands cheaper than using a specialised firm JUST to get a mortgage - there is more to life than getting a mortgage and you'll regret it if you use a bad credit one.

Consider a self cert using an agent who can sell GMAC RFC or similar, thats who I was with and they were good - very good. (Until they sold it to MAS #5) which is just a mortgage processor, ie you cannot apply to MAS.

Good luck whatever you decide