Can I get a joint mortgage with an IVA?
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Home » Mortgage With An IVA » Can I get a joint mortgage with an IVA?
Can I get a joint mortgage with an IVA?
Ashleigh Halit explains how joint mortgages work if you have an IVA.
Can I get a joint mortgage with an IVA?
You can get a joint mortgage after the IVA. That’s an important point to distinguish. But yes, the good news is you can get a joint mortgage. It’s important to understand whether both you and your partner entered the IVA or if it was just one of you.
The search will start with the person who hasn’t got the clearest credit history. Whether or not a lender will approve you will be based on that person. That could also potentially impact the partner that may have quite a good credit rating – but we’ll discuss that more a little bit further on.
Can I get a mortgage if my partner has an IVA?
If your partner is actively in the IVA, and you want to get a mortgage without them being named on it, that’s fine.
But if you’re hoping to get a joint mortgage while your partner is in an IVA, that wouldn’t be possible. You could do something in your own name, or you could wait until they’re out of the IVA.
Will my partner be affected by my IVA?
If you’re outside of the IVA and you want to get a joint mortgage, your partner may be impacted. If they have a clean credit history and they were to look for a mortgage in their individual name, they may be able to access better products without you.
I would advise you to sit down and weigh up the benefits and the risks to each of you in terms of getting into a joint credit commitment. Talk it through with a mortgage broker. We can look in detail at the difference between getting a loan together and just getting something by yourself.
How long after an IVA can I get a joint mortgage?
Theoretically, you can start applying for credit once your IVA has finished. There’s not a massive appetite out there for lenders to start working with someone immediately after the IVA.
Most lenders that will help post IVAs usually start considering that from three years onwards, but a few will look at it a year outside of the IVA.
It probably is better for you to approach a mortgage broker, as we have an understanding of which lenders in the market will be happy to help.
Do I have to declare an IVA when applying for a joint mortgage application?
Yes, you do have to declare the IVA when applying for any mortgage, whether it’s joint or just in your name. Always make sure that you do declare that, because the lenders do ask that question.
If I pay my IVA off early, can I get a joint mortgage?
If you pay it off early, that’s great. I would suggest that you get something in writing because your credit profile may not be updated immediately. You’ll want to be able to prove that you’ve come out of your IVA early.
But most lenders will still require at least a year outside of that IVA, and a lot of them will be looking at a three year period.
Again, it’s not necessarily a no, but you’d need to speak to a broker to point you in the right direction.
What deposit will I need for a joint mortgage after an IVA?
It depends on the individual situation in terms of what deposit is needed. The deposit will be linked to the purchase price of the property. I can’t say that you will need a £10,000 deposit or a £50,000 deposit – I’d need to know the purchase price of the property.
There are certainly lenders that allow mortgages with a previous IVA on a Loan to Value of up to 90%. You need to sit down and work out the numbers based on how much you’re looking to purchase the property for.
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How much can I borrow for a joint mortgage with an IVA?
How much you can borrow is going to depend on how much you earn, any debts and how many children you have. Everything is factored in on an affordability basis. You will be treated the same as any other client in terms of how much you can borrow and how affordability is assessed.
This is where I recommend you sit down with a mortgage broker and have a look through your circumstances. At the end of that, your broker should be able to tell you how much you can afford, what deposit you will need, and which lenders you can go to.
Can I pass a credit check with an IVA?
The lenders that will potentially consider you post IVA are a bit more niche. They will perhaps take a manual underwriting approach to consider whether you can have a mortgage.
The typical high street bank lenders, like Santander and Halifax, would more than likely operate on a credit score cut off. The lenders you’ll be dealing with will be those that take a more manual approach.
In terms of passing a credit check, it’s about whether you fit within the lender’s criteria. Are they happy that your IVA has been settled within a certain period of time? Have you been conducting any new credit commitments responsibly since the IVA?
What risks do I present when looking to get a joint mortgage with an IVA?
It’s more about the person that’s going on that mortgage with you. I’m assuming that person didn’t have an IVA in the background.
In that case, the risk for them is knowing that they might not get the right products because of your credit history. They might be able to get something better by not taking a joint mortgage.
But we do understand that things happen in life. Perhaps one of you had a problem which meant that you had to enter into an IVA – but now you want to buy something together, and that’s completely understandable. Just be aware that you’re not going to get the right products, at least to start with.
Also, if you’re going into a new mortgage agreement with someone that had an IVA in the past, you need to be comfortable with that person’s financial history. Why did they enter into that IVA? Do you feel they will be reliable in paying back a new credit commitment jointly with you? You want to be sure they’re going to be able to afford whatever you’re committing to.
A lender doesn’t look at a joint mortgage as you each having a share of that payment. To them, whatever happens, that mortgage payment must be paid each month. If your partner can’t afford that mortgage commitment, you need to make sure the mortgage is paid. If it isn’t, your credit will be impacted as well.
These are important things for that person to consider before committing to buying a home with someone that has been on an IVA.
Will I need a joint mortgage from a specialist lender if I’ve had an IVA?
The lenders that will help, especially in the early years, are likely to be more specialised. They will be banks that often deal with people that have impaired credit. That’s not to say that you have to approach a specialist lender – because there may be lenders out there that are still able to help.
Again, it will depend on the specific circumstances, when the IVA was settled, your current situation, your income and your current credit profile. It’s just not black and white. Again, sit down with a mortgage broker and we can guide you on which lenders are available to you.
Where can I get more information on IVAs and joint mortgages? How can a mortgage broker help here?
There are a lot of good mortgage brokers out there. Definitely do your research on which broker you approach. There’s also things online such as StepChange, which is an organisation that helps people with IVAs. It has a lot of information for people that have just come out of an IVA and are looking to get their credit back on the move again.
In terms of how a mortgage broker can help, it’s about our expertise and experience in working with people in similar situations. We point you in the right direction and give you the advice you need to make an informed decision.
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