I am 3.5 year into an IVA, will I be able to transfer to another rate?

Posted on 4 October 2007

I am 3.5 years into an IVA - my mortgage (fixed rate) is due to expire in a couple of months and want to transfer to another mortgage lender as at the time I was told that by the end of the fixed term, I would be in a position to transfer to a regular mortgage due to the time in the IVA as opposed to sub-prime. Is this correct and can you advise what I need to do next. I have never missed a mortgage payment payment or have been overdrawn in the period of being in the IVA.

Hi Amanda,

It sounds like you have done all the right things for getting your credit rating back on track. Making mortgage payments in full and on time is the most valuable thing. What you need to do next is get your credit report from www.equifax.co.uk or www.experian.co.uk which should show a cleaned up record of the last few years. Using this, a broker will be able to find you the best mortgage for your circumstance now, including, as you so rightly say, some mainstream lenders who are able to consider someone with an existing well-conducted IVA.

Charcol's sub-prime team has access to mainstream lenders as well, you can reach them on 0800 066 5575 - free of charge.  This team does not charge a fee for its advice so there is no reason not to take advantage of them.  The typical APR for bad credit business is 7.9% APR.

Best of luck.

Katie

Category: Bad credit

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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