Mortgage after an IVA
Getting a mortgage after an IVA is realistic once the arrangement has completed and you can show clean conduct since. During an active IVA it is difficult and usually needs the insolvency practitioner's consent, so most people wait. An IVA stays on your credit file for six years from its start date; as it ages and then drops off, the choice of lenders grows and the rate premium shrinks, with a larger deposit helping along the way.
During, on completion, and after
An IVA (individual voluntary arrangement) is a formal agreement with creditors. While it is active, new borrowing is tightly limited and generally needs consent, so few lenders will offer a mortgage. Once it completes, the door opens: specialist lenders consider applicants with a completed IVA, especially with clean recent conduct and a reasonable deposit. Because the IVA is recorded for six years from its start, timing your application around when it ages or drops off can make a real difference.
What lenders look for after an IVA
- Confirmation the IVA has completed (a completion certificate).
- Clean credit conduct since completion.
- A deposit above the minimum where possible.
- A clear explanation of the circumstances, now resolved.
Common questions
Can I get a mortgage during an IVA?
It is difficult but not always impossible. An IVA is a formal, legally binding arrangement, and taking new credit during it usually needs the insolvency practitioner's consent. A small number of specialist lenders consider it, but most borrowers wait until the IVA completes.
What about after the IVA completes?
This is where options open up. Once the IVA is completed and you can show clean conduct since, specialist lenders will consider you, and the choice and rates improve as more time passes after completion. A larger deposit usually helps.
How long does an IVA affect me?
An IVA is recorded on your credit file for six years from its start date, so it can still be visible for a while after a typical plan completes. As it ages and then drops off, lenders weigh it less and eventually not at all.
Will I get a mainstream rate?
Soon after completion, usually not; you would expect a specialist lender and a rate premium. As the years pass, the deposit needed and the rate both ease, and many borrowers reach mainstream deals once the IVA is well behind them or has dropped off the file.
Related: mortgage after bankruptcy and the adverse-credit hub.
Founder, MortgageExplained
Adam spent over eight years as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, so you know where you stand before you speak to a regulated broker. Every page on the site is written by Adam.
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