Ah. Turns out that you can actually get a mortgage even if you are still in an IVA. OH just sent me this info pasted below. Unfortunately I seem to have pissed him off a bit as I thought he had overlooked something major- turns out he hadn't. Gah. Too much stress!
' Anyone asking whether they can I get a mortgage with an IVA will be pleased to know that the answer is:
Yes? You can get a mortgage when you are in an IVA.
There are obvious difficulties that will lay ahead for anybody who wants to apply for a mortgage whilst they are in the process of an IVA, as the IVA will have an impact on their credit worthiness.
This in turn will have a negative impact on the choice of mortgage products the debtor will have, and which mortgage companies will be be prepared to offer the mortgage too.
Over the past months there has been a major shake up of the mortgage market, and some drastic reductions in the mortgage products available in the mainstream, however, there are still some specialist companies that provide mortgages for people who are in IVAs.
There will be some obvious differences between the normal ?prime? mortgage products available on the high street, and the ?sub-prime? mortgages that are available for people in IVAs, and here are two of the main differences to be aware of:
Interest rates. People who have a poor credit history will be seen as a greater risk than people with a good credit record, and the risk is reflected by an increase in the interest rate being charged. There is a higher risk attached to the mortgage, so there is a higher reward for the lender.
Larger deposit. People who are considered a risk to the lender will be required to invest more of their own money in a property before a lender will accept the risk is worth taking. This can result in sizeable deposits being required to ensure the loan is offered.
This second point is why most people in an IVA will struggle to get any further.
After all, the general terms of an IVA insist that a debtor must inform their Insolvency Practitioner if and when they have available a large sums of money, including the deposit for a house, and therefore being in a position to place a large cash deposit down on property is unrealistic for someone who is in an IVA already.
However, there are circumstances where a deposit could be made available by a 3rd party, for instance a parent, a husband or a wife, where the 3rd party themselves are not in the IVA, but either want to buy a property with, or on behalf of the person in the IVA.
This is completely allowable, though documents should be drawn up to outline the terms under which the deposit has been provided. This is prudent practice, and will protect the deposit from the IVA creditors in the future.'
So, there you go. It really is just this erroneous CCJ causing the issue.