Mortgages for IVAs

Due to the current nature of the financial markets and as a result of the 2007 credit crunch, most mortgage lenders are extremely reluctant to lend money to people who have experienced or are experiencing financial problems.

But, through our preferred specialist mortgage broker, we've managed to keep a track of all the mortgage lenders still in the IVA market place and those willing to provide IVA mortgages to the people looking for them.

You'll be pleased to learn that IVA mortgages are available for each of the different scenarios described below.

Mortgages for IVAs

If you want to talk to a fully qualified FSA regulated specialist IVA mortgage broker, simply complete the form at the foot of the page and we'll do the rest.

Mortgages for a contribution based IVA

This type of mortgage is only available if you have been in your IVA for longer than 6 months, have paid all your IVA contributions on time and have no arrears.

Due to the financial conditions being experienced at this time, January 2013, the highest Loan to Value (LTV) ratio for this mortgage is currently sitting at 50%.

This means you will have to be able to provide at least half of the property's purchase price as a deposit in order to qualify for a mortgage on the remainder.

This mortgage is suitable for people in an IVA that are currently renting or lodging but are now looking to purchase a property instead, either solely or with a partner.

The maximum loan value for this type of mortgage is £400,000 and it is available for employees and the self employed alike.

Mortgages for a Full and Final Settlement IVAs

This type of IVA mortgage is suitable for people looking to propose a 'Full and Final Settlement IVA' by releasing funds from their property.

The LTV ratio and the percentage rates will vary substantially with this type of mortgage product, depending on the severity of the damage already incurred to the applicant's credit rating.

If the applicant has managed to maintain all commitments to their debt and can display a clean credit history, then they will qualify for high street lenders 'Prime' products.

Otherwise alternative mortgage companies will be sought, to provide the best deal available to suit the personal circumstances of the applicant.

The maximum loan value for this type of mortgage will vary from £400,000 to £500,000, depending on the damage done to the credit rating and it is available to employees and the self employed alike.

Mortgages to bring an IVA to an early close

This type of mortgage application is not at all common, as most IVAs tend to have an 'equity clause' within the terms and conditions that already deals with releasable equity owned by the IVA applicant.

However, it can be possible to bring an IVA to an early close in cases where a partner, unassociated to the IVA, is prepared to contribute some of their equity to creditors to bolster the offer being made.

This type of IVA mortgage will, again, be limited to a maximum release of up to 50% of the value of the property, ensuring the lender has the equivalent of a 50% deposit remaining in the property.

The maximum loan value for this type of mortgage is £400,000 and it is available for employees and the self employed alike.

Mortgages for people who have completed an IVA

An IVA will remain on the credit history for 6 years from its starting date and, as a result, will have a severe impact on the mortgage products available for this duration.

So, this type of mortgage is available for people whose IVA completed satisfactorily more than 3 years ago, yet is still visible on their credit history.

It allows for a maximum LTV of 60%, meaning the applicant will need to have a 40% deposit in order to qualify for this type of mortgage.

The maximum loan value for this type of mortgage is £500,000 and it is available for employees and the self employed alike.

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