IVA Mortgage Advice

Having an Individual Voluntary Arrangement (IVA) can make getting a mortgage more difficult, but it does not necessarily mean you cannot get one.

At Premier Mortgage Services, we provide specialist IVA mortgage advice for people who have had an IVA, whether it has recently been completed or is now several years in the past.

The lenders available to you will depend on factors such as when your IVA started, whether it has been completed, your current credit history, income, deposit and overall financial circumstances.

If you are currently dealing with debt through a Debt Management Plan (DMP) rather than an IVA, we can also help you understand your mortgage options.

As a whole-of-market mortgage broker, we can look at your circumstances and help identify lenders that may be willing to consider your application.

Can you get a mortgage after an IVA?

Yes, it can be possible to get a mortgage after an IVA.

However, you may have fewer lenders to choose from than someone with an unblemished credit history. You may also need a larger deposit and could be offered a higher interest rate.

The age of your IVA is particularly important.

An IVA normally remains on your credit file for six years from the date it was approved. This is the case even if you complete the IVA before the six-year period has ended.

Once six years have passed, the IVA should automatically disappear from your credit file.

This can potentially give you access to more mainstream mortgage lenders, although some lenders may still ask whether you have ever been subject to an insolvency arrangement.

It is important to answer these questions honestly.

Can I get a mortgage while I have an IVA?

Getting a mortgage while an IVA is still active can be very difficult.

Most mortgage lenders will not consider an application while you are still in an active IVA. This is partly because your disposable income is already committed to the IVA and taking on additional borrowing may require permission from your insolvency practitioner.

There are some specialist lenders that may consider an application while an IVA is active, but the options can be very limited.

You may need a substantial deposit and could face significantly higher interest rates.

For most applicants, waiting until the IVA has been completed will provide more options.

How long after an IVA can I get a mortgage?

There is no single waiting period that applies to every mortgage lender.

Some specialist lenders may consider applications relatively soon after an IVA has been completed, while other lenders may want to see a longer period of financial stability.

Many mainstream lenders will prefer the IVA to have been completed and may be more comfortable once it has disappeared from your credit file.

Because lenders use different criteria, the date your IVA started and the date it was completed can both be important.

This is one reason why getting specialist IVA mortgage advice before making an application can be useful.

How long does an IVA stay on your credit file?

An IVA normally stays on your credit file for six years from the date it was approved.

For example, if your IVA started in 2022 and you completed it after five years, it would normally remain on your credit file until 2028.

Once the six years have passed, it should automatically be removed from your credit file.

Your IVA will also appear on the Individual Insolvency Register while it is active. After the IVA has been completed, your details are normally removed from the register within around three months.

Does an IVA affect your mortgage interest rate?

It can.

Mortgage lenders assess applications based on risk, and a previous IVA can indicate that you have experienced financial difficulties in the past.

Depending on your circumstances, this could mean:

• Fewer mortgage lenders are available
• You may need a larger deposit
• You may have a lower maximum loan-to-value (LTV)
• You could be offered a higher interest rate
• Affordability may be assessed more strictly

The impact should reduce as your IVA becomes older and you demonstrate a consistent record of managing your finances responsibly.

How much deposit do I need for a mortgage after an IVA?

There is no fixed deposit requirement for everyone who has had an IVA.

However, having a larger deposit can improve your chances of being accepted and may give you access to more competitive mortgage rates.

For example:

10% deposit = 90% LTV

20% deposit = 80% LTV

A lower LTV generally represents less risk to the lender.

Depending on how recent your IVA was and the rest of your credit history, some specialist lenders may prefer applicants to have a deposit of 15% to 25% or more.

The amount you need will depend on the lender and your individual circumstances.

What if my IVA has been completed but my credit file is wrong?

It is important to check your credit reports before applying for a mortgage.

You should check that:

• Your IVA is shown as completed
• Accounts included in the IVA are correctly recorded
• Defaults have the correct dates
• Debts are not incorrectly showing as outstanding
• There are no other errors on your credit file

You can check your reports with Experian, Equifax and TransUnion.

If something is incorrect, you should contact the relevant creditor and credit reference agency to have the information corrected. Your IVA completion certificate can be useful as evidence that the arrangement has been completed.

Correcting mistakes before making a mortgage application could help avoid unnecessary problems during the lender's assessment.

What will mortgage lenders look at after an IVA?

An IVA is only one part of your mortgage application.

Lenders will also consider your current financial position, including:

• Your income
• Your employment
• Your deposit
• Your existing debts
• Your monthly commitments
• Your recent payment history
• Any defaults, CCJs or missed payments
• Your credit utilisation
• Your affordability

A good recent payment history can help demonstrate that your financial circumstances have improved since the IVA.

If you have other adverse credit issues alongside your IVA, it is worth discussing these with a specialist mortgage adviser before making an application. You can also read more about the different situations we may be able to help with on our specialist mortgage advice page.

There is also no specific credit score that guarantees mortgage approval. Each lender has its own criteria and assessment process.

What documents will I need?

If you have completed an IVA, you may need to provide your IVA completion certificate as part of the mortgage application.

You will normally also need documents such as:

• Proof of identity
• Proof of address
• Proof of deposit
• Bank statements
• Payslips if employed
• SA302s or tax calculations if self-employed

The exact documents required will depend on the lender and your circumstances.

Having the relevant paperwork ready can help make the application process smoother.

Can I get an Agreement in Principle after an IVA?

Potentially, yes.

Some lenders may provide an Agreement in Principle (AIP) to applicants who have previously had an IVA.

However, an AIP is not a guarantee that your mortgage application will ultimately be accepted.

The lender will carry out a more detailed assessment when you make a full application, including checking your income, affordability and credit history.

This is why it is important to establish which lenders are likely to accept your circumstances before making multiple applications.

Can I remortgage after an IVA?

Yes, it can be possible to remortgage after an IVA.

Your options will depend on factors including when the IVA started, whether it has been completed, whether it still appears on your credit file and your financial circumstances today.

If you are staying with your existing lender and simply taking a new deal without borrowing more, the process can sometimes involve less extensive credit assessment than moving to a completely new lender.

If you want to switch to a different lender or increase your borrowing, your IVA and wider credit history are likely to be considered as part of the application.

How can I improve my chances of getting a mortgage after an IVA?

The longer your IVA has been completed and the stronger your recent financial history, the more options you may have.

There are several things you can do to put yourself in a stronger position:

Keep up with all payments

Avoid missed or late payments on your current credit commitments and household bills.

Check your credit reports

Make sure the information held by the three main credit reference agencies is accurate and that your IVA and associated accounts are correctly recorded.

Avoid making lots of credit applications

Making multiple applications in a short period can make it harder to demonstrate financial stability. It is generally better to establish which lenders may accept your circumstances before submitting a full mortgage application.

Reduce outstanding debt

Lower levels of existing debt can improve your affordability position with some lenders.

Save a larger deposit

A larger deposit reduces your LTV and can potentially increase the number of lenders available to you.

Maintain stable finances

Lenders will want to see that your financial circumstances have improved since your IVA. Stable income, responsible spending and a good recent payment history can all help.

IVA mortgage advice from Premier Mortgage Services

If you have had an IVA and are considering buying a home or remortgaging, you do not necessarily have to wait until it disappears from your credit file before exploring your options.

The right lender will depend on your individual circumstances.

At Premier Mortgage Services, we have access to a comprehensive range of lenders, including those that specialise in more complex and adverse credit situations.

We can look at when your IVA started, when it was completed, your current credit history, income, deposit and affordability before identifying the mortgage options that may be available to you.

Contact Premier Mortgage Services for specialist IVA mortgage advice and we'll help you understand your options.