An IVA or Individual Voluntary Arrangement is an agreement between you and your creditors in which you agree to make one payment out of your income each month to help you clear outstanding debts. This payment amount is based on your personal budget, so the amount is manageable for you, and the payments are spread over a fixed period of time. An IVA is useful when you need to prove your ability to make payments to high street mortgage lenders. However, under the terms of an IVA, you agree to contribute as much as possible toward paying off your debts each month. In short, an IVA gives you an opportunity to pay a manageable amount each month in order to pay off your outstanding debts.
With an IVA, your home is protected and your job is not at risk. You can even apply for a new mortgage, called an IVA mortgage. There are many UK mortgage lenders that will not consider IVA mortgage applications because of the inherent risk that they will have to take on. However, the bad credit mortgage market in the UK is so extensive that certain mortgage lenders have decided to cater solely to people looking for IVA mortgage or other types of subprime mortgages. These lenders will take a careful look at your financial history and at the progress you're making on your IVA before they offer you an IVA mortgage.
The type of IVA mortgage that you'll be offered depends on how long ago your IVA was cleared and on the amount you're able to offer as a deposit. If you're able to offer five percent or more, you should be in good shape to receive an IVA mortgage. Also, the mortgage interest rate you'll receive is based on similar factors. Often, with IVA mortgages, your lender will write a clause into the mortgage contract saying that part of your loan needs to be paid back by the equity in your home. Your home will still be yours, but part of the value needs to be used to repay your debt.
Getting an IVA mortgage has some disadvantages. When you have an IVA mortgage, you will need to spread your payments over a longer period of time. If you fail to comply with the terms of your IVA, your home and your other assets may be at risk unless you specifically excluded them from the terms of your IVA proposal. If you default on your IVA payments, the next step is to declare bankruptcy. So getting an IVA mortgage will put even more pressure and strain on your ability to make your regular monthly payments.
If you'd like help finding the best bad credit mortgage loan for you, take a minute to fill out our short mortgage form, and we will put you in touch with an experienced adviser from the SimplyFinance network. Your mortgage broker will search to find the best IVA mortgage deal for you.
A CCJ (County Court Judgment) is a judgment of debt as decided by UK county courts. A CCJ is an order released by a court under special circumstances such as defaulting on loan. This special court order outlines the terms for the repayment of your debt. If a CCJ is registered against you, you may encounter problems being approved for credit when applying for loans and mortgages in the future. If you are served with a CCJ, it normally stays on your credit report for up to six years.
If a CCJ is completely settled within 30 days of the date the judgment was made, it will not appear in the UK bad credit register. If a payment is made after 30 days, the judgment will still appear in the UK bad credit register, but it will be marked as being satisfied. If you are in a position that does not allow you to repay the money that you owe to a lender, a company, or an individual, you may find yourself served with a CCJ. A CCJ mortgage is the kind of mortgage you need to look into if you have been served with a CCJ by your creditors. The judgment of a county court may be enforced in a number of ways. They can impose a fee on any property mentioned in the CCJ order, appoint a collection agent to your account, issue a reclamation warrant on your property, or they can garnish your wages until your debt is repaid.
Getting a Mortgage When You Have a CCJ on Your Credit Report
CCJ is one of the many reasons that people face difficulties when they try to find a mortgage. If you have a CCJ registered against your name, it may affect your ability to get a mortgage or remortgage for up to six years. To get a CCJ mortgage is not an easy task. However there are some CCJ mortgage lenders who are willing to help you with your mortgage even if you have a CCJ on your record. The best way to begin looking for a CCJ mortgage is to speak with a mortgage counselor.
Mortgage companies providing CCJ mortgages take into account any previous CCJs against your name. Your CCJ mortgage rates will differ depending on how many CCJs you have, how long they have been on your record, and the total value of the CCJs. This means that these mortgage companies will look at your entire history in order to provide you with the best possible CCJ mortgage rate for your situation.
Some CCJ mortgage lenders will turn down your application for a CCJ mortgage if your judgement has not been settled or satisfied, but the current competitive mortgage market has allowed several lenders to specialise in CCJ mortgages making it easier for you to find a way to get a CCJ mortgage loan that best suites your needs.
If you'd like help finding the best CCJ mortgage loan for you, take a minute to fill out out short mortgage form, and we will introduce you to a bad credit mortgage broker from the SimplyFinance network, who will be able to find the best CCJ mortgage deal for you.