When looking at whether or not we can use a remortgage to pay an IVA there are a couple of things we need to consider.
The good news is that there are Mortgage lenders who will allow you remortgage to pay an IVA , even if the payment of the IVA is the only purpose of the remortgage.
The bigger issue however is, will you fit criteria?
Typically if you are in an IVA there are a number of debts that accrued in the weeks, months or years leading up to the IVA. The status of the these debts on your credit file can impact your ability to get a Mortgage.
Typically once you enter an IVA the debts would either Default (this usually appears as a Status 8 on your credit file) or go to an Arrangement to pay (usually this shows as an AR marker). Neither of these are an issue as such, the important parts are how many debts there were, how old they are, the balances and who they were to.
The types of Mortgage lenders who will allow you to raise a Mortgage to clear an IVA understand you will likely have issues on your credit file and so they do not credit score your application. They do however have criteria that needs to be met, that could be things like no more than x Defaults in the last 1, 2 or 3 years for example. They all vary in what they will and wont accept so it is a case of getting your credit report and checking it against criteria and maybe discussing it with our account managers at the lenders to see if we can get your Mortgage through with them.
How can we help?
We specialise in Bad Credit mortgages, we understand IVAs, both what they are and how they work and being a Whole of Market Broker and Independent we can research the entire UK mortgage market to find the best deal for your needs and circumstances.
We know the lenders who accept IVAs and we speak to them on a daily basis, we know their requirements and their processes so remortgaging with bad credit, or even to pay off an IVA is something that can certainly be done.
We spend some time understanding what happened to cause the IVA (not to be nosey, but the more we understand about the situation, the more we can discuss with the underwriters before doing any credit checks), we also want to understand where you are with everything, is it still early doors and the IVA started in the last 12 months or are we coming up to 3-5 years where we may have more options? Lastly, what you are trying to achieve, some people want to draw a line under the situation ASAP, others want to make the most of what was likely a big decision to ensure they come out of it in the best position possible. Everyone is different, so the more we understand, the more we can tailor our research and advice.
In essence, the answer to the question is yes we can help you to remortgage in order to pay off an IVA. However with anything like this, the devil is in the detail and so we just need to understand your circumstances, see your credit report and then we can look to see if we can help and obviously the big question – what it will cost.