24h Market Info

One of the questions I am often asked in relation to individual voluntary arrangements and bankruptcy is “Will I be able to get credit after the end of the arrangement?” The short answer to this is yes. However it is useful to fully understand the effect of undertaking such a solution so that you know exactly where you stand.
Firstly it is important to understand that if you have entered into an individual voluntary arrangement or bankruptcy, this be recorded on the insolvency register and on your credit file. This record will remain in place for 6 years from the day that the arrangement started. In itself, this registration does not automatically prevent you from taking credit. Ultimately, if you apply for credit, the bank you approach will use its own criteria to decide whether to lend you money or not. However, they will normally use your credit file as a source of information on which to base this decision. Generally, if they see you are in an IVA or are bankrupt, you will not meet their lending criteria and your application for credit will be declined.
It is also important to remember that if you are in an individual voluntary arrangement, you must not attempt to take credit without first getting the permission of your insolvency practitioner. It is unlikely that they will agree to allow you to have credit unless you are considering a re-mortgage to release money for the benefit of your creditors. If you are looking to re-mortgage while still in an IVA, you may have to provide the mortgage lender with a letter from your Insolvency Practitioner confirming what the loan is for and that you are able to comfortably afford the repayments.
Naturally, most people are interested to understand if they will be able to borrow again when their IVA is completed or they are discharged from bankruptcy? If you are in this position, you must remember that the record of the IVA or bankruptcy will remain on your credit file for 6 years whatever date the arrangement was completed. As such, even if you settle your IVA early or are discharged from bankruptcy after one year, any lender you approach will still be able to see that you have been through this process.
Once you have been discharged from bankruptcy or your IVA has been completed, legally you are allowed to borrow again. Of course, different lenders will have different attitudes to lending to people with past credit problems. In theory, you should be an extremely good prospect to lend to as you will have no other unsecured debt which you have to repay. In addition, you will have been living within a strict expenditure budget and therefore should have learned how to better manage your money to ensure any future borrowing repayments are made on time. Given this, you should be successful if you want to apply for example for a new credit card. However, you must recognise that the credit limit you will be given is initially likely to be minimal. As you show that you are able to sensibly use and repay this facility, the limit may be increased.
In terms of secured borrowing such as getting a mortgage, prior to the onset of the credit crunch in 2008, this was relatively easy. As above with no other unsecured borrowing to worry about, you would have been a good prospect for a mortgage lender. However, in today’s lending environment it is not easy to secure credit under any circumstances. Generally you will need a lump sum deposit of up to 25% of the value of the property. As such, you will normally need to secure this from a family member or start saving!... Read More

M. Govindarajan... Read More

New data from the Council of Mortgage Lenders shows further signs of stabilisation in the mortgage market, but volumes are still weak on a historic basis and the latest RICS UK housing market survey shows the market constrained by lack of supply.... Read More

This debate will never end. Actively managed mutual funds are not the easiest of animals to tame. Performance relies on a series of variables that few of us could deal with on a day-to-day basis. And in their defense, I want to offer some alternative thoughts to what you might be forming as an opinion.... Read More

If you have a pension, you are probably invested in some way in hedge funds. They have been described as the gated community of investing in part because they require large amounts of available capital - and I mean millions of dollars worth. Because pension plans need diversity and risk, they often benefit from some of this sort of ‘outside of the mutual fund regulatory world’ type of investment approaches. Twenty-five percent of them do. The individual investor often consider the “average investor”has barely any exposure. Mutual funds would like to tap that marketplace and in all likelihood, your 401(k) will be seen as prime hunting grounds for these newer funds.... Read More

The countdown from Thanksgiving to Christmas is a magical time of year, but it’s also a warning to real estate investors that December 31 – the end of the tax year – is almost upon us. If you haven’t yet gotten your financial house in order you’re running out of time to gather your records and do some last-minute planning to minimize your tax burden. The good news is, if you start now, you still have time to save yourself some money on the tax bill you’re going to have to pay in April. Here are 10 great money-saving tax tips that will put a warm smile on your face regardless of the temperature outside.... Read More

Acquisition of property, either as an investor or a prospective homeowner can be one of the most exhilarating and frightening experiences of your life. In both cases, it is important that you find just the right property at the right price. With so many options to choose from it can quickly become overwhelming. Let’s start with the credit union to help you make the most of this exciting process of buying.... Read More

As the economy continues its rough ride, the fallout from mortgage and credit card late payments and delinquencies has dropped the credit scores of consumers across the country. As credit scores take a higher profile from news reports to conversation at cocktail parties, more consumers are taking interest in their credit reports. The problem with all the information and chatter is that much of it doesn’t accurately reflect what is important regarding credit scores and what is not.
Take this true/false test to see where you stand:... Read More

Monarch Bhatt-... Read More

One of the more frustrating aspects of being in the military is the fact that at any time, you can be given a permanent change of station (otherwise known as a PCS). This means that you and your family have to pack up your belongings, sell the house, and find a new home. Moving is stressful even under the most favorable conditions, but with a PCS, there’s no guarantee how long you’ll be living in your new quarters. This leaves everyone on edge, waiting for the next PCS orders to come in.... Read More