IVA Mortgages

Can you get a mortgage with an IVA?

We are here to help.

At Mortgage Decisions, we understand that obtaining a mortgage while an IVA is present on your credit report can be challenging. That is why we work with specialist lenders who take a more ‘personalised’ approach to underwriting and are willing to consider individual circumstances.

While high street banks may have strict rules regarding mortgages after an IVA, we can help you apply for a mortgage with a lender who uses a more flexible approach. This means that having an IVA on your record does not automatically disqualify you from obtaining a mortgage, although it will be taken into consideration.

It is important to understand that having an IVA may affect the terms of your mortgage, as lenders will want to mitigate their risk. This may result in the need for a larger deposit and potentially higher interest rates. However, each lender will consider your unique circumstances and adjust the terms accordingly.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is an effective way to address a history of poor credit without resorting to bankruptcy. Through an IVA, a plan is negotiated with an insolvency agent to pay off creditors and achieve debt-free status at the end.

How long does an IVA last?

An Individual Voluntary Arrangement (IVA) typically lasts for 5 or 6 years. However, there are some circumstances that can extend this timeframe:

  1. Missed payments

If you miss or fall behind on your agreed upon IVA payments, the term may be extended to make up for the shortfall.

  1. Property Equity

If your IVA includes your property and you have more than £5,000 of equity remaining at the end of the 5 years, you may need to extend the IVA by up to 12 months. This is because remortgaging the property to release the equity can be difficult with an IVA on your credit report.

How long does an IVA stay on your credit file?

It is important to note that an IVA is a legally binding agreement and will be visible on your credit history for a full six years after its completion.

How does an IVA affect your credit score?

When applying for a mortgage, lenders will assess various factors, including your credit history, income, affordability, and the required loan-to-value (LTV) of the mortgage. While an IVA may be a factor, lenders will also consider your behaviour and financial stability following its completion. Therefore, it is crucial to maintain good credit and show a commitment to responsible finances.

It is worth noting that every lender has their own risk assessment process, and it is possible to secure a mortgage during an active IVA. However, it is essential to work with a specialist lender who can consider complex income streams and unique circumstances.

In conclusion, obtaining a mortgage with an IVA on your credit report is possible, but it may require working with a specialised lender and being willing to accept certain terms. Our team at Mortgage Decisions can help you navigate this process and find the best solution for your individual situation.

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Speak to our experts

With access to 1000s mortgages from over 90 high street lenders, we can help you find the right mortgage. Our five-star Google reviews back this up. Call us now and speak to a member of our experienced team.

saving money illustration

Mortgage calculators

Find out more
man thinking about house and money illustration

Your protection

Find out more

Frequently asked questions

What risks do I present with an IVA?

Can you pass a credit check with an IVA?

How does my IVA affect a joint application?

How long after an IVA can I get a mortgage?

Can I remortgage with an IVA?

Do I have to declare an IVA on my mortgage application?

Will I need to pay a larger deposit or a higher interest rate for an IVA mortgage?

Do I need to remortgage or sell my home for my IVA?

Can I sell my house after an IVA?

How can I improve my credit score after an IVA?

Very efficient service from start to finish. Good communication. Impressed all round.

  • 5 star review on TrustPilotMick T

My request to renew my existing mortgage with Mortgage Decisions was superbly handled by David who is a most knowledgeable person. I was impressed with his professionalism and his attention to detail. The end to end process was explained throughout by David in particular the various options available to me. This is the second time that Mortgage Decisions have assisted with my mortgage and I wouldn’t hesitate in asking them again in the future.

  • 5 star review on TrustPilotBarney

Throughout my process I have liaised with Toby and Louis. Always professional, friendly and informative every step of the way. Keeping me updated at all times in what is a most exciting time for me. Am so very grateful. Thankyou!!!

  • 5 star review on TrustPilotCaroline

Excellent service with friendly staff who help you every step of the way. Russell and Max have been fantastic, professional and understanding throughout the process. Thoroughly recommend!

  • 5 star review on TrustPilotTimi O

Kevin and Beccy provided a wonderful service and I highly recommend utilizing them for your mortgage needs. They worked diligently for us especially as we were international buyers. 5 stars!

  • 5 star review on TrustPilotMyles T