Large loan with IVA

[Skintymcskint]

I'm going to ask for no judgement on my situation, or at least judge without letting me know.
Writing this is horrible enough and actually quite daunting.

After losing my job and facing lots of grief and having a breakdown over covid, my DP and entered IVAs. (Death of parent, grandparent and loss of much wanted pregnancy one after the other.)

Sadly, I can't return to work as one of my children is special needs and often can't attend school etc, I just am completely unemployable for the foreseeable future.

We own our house with a remaining mortgage of 110k and the house is worth just over 255k now.

We have decent equity to buy a cheaper house we've seen, but we need to repay the early repayment fee and mortgage balance, plus solicitors and estate agents etc fees. Which leaves us short for the house we want.

Our insolvency practioner would allow us to take on a debt as we'd be clearing a mortgage, so it makes sense, but I'm unsure where to look for a lender who'd consider loaning to someone with an IVA.

Ironically, prior to 2020, we'd have pretty good credit so it's quite sad writing this really. We're not flashy etc, just fell on tough times. I really appreciate anyone who has advice to help.

Thank you for reading.

No judgement here. Life can be utterly shit at times.

Are you looking for a small mortgage or a loan ?

Thanks for replying userxx either one really, but the mortgage seems impossible, I've spoken to 2 specialist lenders and they'd prefer both partner and I to be working, which just isn't doable.

Can you speak to a loan company who deals with IVA's, you'll pay top rate but if it's small enough it should be doable.

Is there a reason other than affordability why you're looking to move?

The aim of an IVA is to allow you to keep your home while you pay off a proportion of your debt, so your IVA payment is supposed to be affordable after you've covered your essential living expenses. Have you done regular reviews with your supervisor, accounting for increases in food, bills etc?

Also, have you applied for DLA and carers allowance in relation to your child's special needs?

Before you commit to anything its probably worth posting on the IVA forum of Moneysavingexpert.com, as you'll get really good advice about your options

https://forums.moneysavingexpert.com/categories/iva-dro

@BarbaraofSeville thanks for your reply/advice.
Yes in answer to the move, my son would massively benefit from this house move, it has spaces that would really work for him (room for a sensory room etc and his own bedroom, which would improve everyone's lives) I already get the top rate of the DLA and I'm my sons carer, but it wasn't half a battle to get it, but now I have it for the next 7 years without needing to reapply. I'll check out that forum now, thank you.

@userxx I appreciate your help

Oh op no judgment here. I’m sorry you’ve had such a bad run but it sounds like this move could be the turning point. I truly hope so.

Have you spoken to a mortgage broker? They will have access to many more lenders and know the ropes for people with an IVA. My mortgage broker is really lovely, non-judgy and can work miracles.

good luck!

Thank you very much, bitoutofpractice, your words are very kind and appreciated 😊

I know nothing about mortgages but would your existing lender allow you to port your existing mortgage to a new property?

That's probably worth asking @BigGreen

I had an iva many years ago and got a remortgage that was barely any more expensive than a normal one but this was pre 2007 so probably before things were tightened up a lot.

This has really surprised me, you are so savvy moneywise. Not that I'm saying an IVA is a bad thing, I'd also be surprised if Martin Lewis had been in an IVA. It's on a par.

Hope you get sorted OP.