Property News · January 19, 2017

Can I buy a flat while I'm paying off debts through an IVA?


Also, will I be able to get a mortgage after my individual voluntary arrangement ends? I don’t have a deposit thoughQ I have a few questions about whether I have any chance of buying a flat while I am on an IVA (individual voluntary arrangement) and repaying my debts. As I am on an IVA, rather than bankrupt, are there any special options for me? And how many months after I finish my repayments will my credit score be OK for me to get a loan? I want to avoid paying a deposit as I have no savings so what are my options? My income is £24,000 a year so how big a loan I can apply for? PGA Brace yourself for answers you are not going to like. First, the chances of buying a flat while you are still paying off your debts through an IVA are, at best, incredibly slim. And no, there are no special options because you chose an IVA over being declared bankrupt – both are still forms of insolvency. An IVA is a formal agreement to repay your creditors at an amount you can afford. If your creditors agree to the IVA it becomes legally binding. As long as you keep to the IVA terms, your creditors will not contact you or increase the debt. When you have made the final payment, any unpaid debt is written off. Continue reading…

Source : theguardian.com
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