Mortgage after Individual Voluntary Arrangement

Mortgage after Individual Voluntary Arrangement

If you are finding debts are becoming a real struggle to pay and you fear you may be falling in to financial hardship, there are ways to solve your problems before they escalate towards bankruptcy. An Individual Voluntary Arrangement (IVA) could be the answer; if your debts are £15,000 or over then should speak to a debt advisor as they will be able to recommend you an IVA practitioner to help put an arrangement in place.

How Does an IVA Work?

An IVA works by forming a pact between yourself and your creditors for you to pay back a significantly reduced monthly payment to all of your creditors in one sum. This will be an amount you can afford to pay comfortably after all of your incomings and outgoings have been taken in to account.

Once your IVA is in place it will usually be paid over a five your term, after the term has completed any unsecured debt that is remaining will be written off, potentially saving you thousands of pounds on your total debt.

During the course of the IVA you will be unable to obtain any further credit, and may also find it hard to find credit after the agreement has ended. This is due to the fact that an IVA will stay on your credit record for six years. It is possible however to apply to get a mortgage after Individual Voluntary Arrangements have ended.

Getting a Mortgage after Individual Voluntary Arrangement

If you are looking to enter in a mortgage after Individual Voluntary Arrangement payments have ended, then although it is difficult there are options available to you.

You may find a lot of rejections in your applications to lenders as the IVA will still exist on your credit file, because of that reason creditors will view you a high risk potential borrower and be afraid to enter into a long time agreement with you for fear of non-repayment of debts.

You shouldn`t be put off by any rejections as there are lenders that are will to offer you a mortgage after Individual Voluntary Arrangement deal.

Finding the Best Deals

Finding deals that appeal to you can be hard; this is where a specialist sub-prime broker could be useful. Brokers work for you to search out the best deals on interest rates and repayments, the fact that they can do this is beneficial to you, and because of your situation potential lenders will place interest at a much higher rate than the average mortgage. A broker will also give you all the names of mortgage after Individual Voluntary Arrangement specialists available to offer you a product.

The downside to brokers is that they charge for the service that they provide, this can sometimes be costly and because of your circumstances you may not want to pay high fees. If this is the case then an option may be to contact lenders that can offer you products directly.

When applying for any kind of credit after an IVA it is advisable to put as much time as possible between IVA and application.

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