Can I get a mortgage with or after an IVA?
Your IVA does not have to be cleared!
The majority of lenders would not lend to you until you have been discharged from your IVA for at least 3 years, with some wanting it cleared for 6 years. However, I know of lenders willing to consider you even if you are still in the IVA and one where it does not have to be cleared.
How much can I borrow?
- 95% if the IVA started over 6 years ago and is finished.
- 90% if the IVA finished over 3 years ago
- 80% – satisfied for at least 2 years
- 75% – but the IVA must be satisfied before Completion and available for Help To Buy
- 70% – and your IVA does not have to be cleared. Available for Help To Buy but your IVA must be cleared before completion.
I know of other lenders that have variations on the above criteria so please call me to discuss if you could get a mortgage.
Governments Help to Buy (H2B) scheme with only a 5% deposit!
I have a lender that will lend on the Governments Help to Buy scheme where you only need a 5% deposit and the Government puts in 20% and I arrange a mortgage for the remaining 75% of the property’s value. The IVA must have been satisfied for at least 12 months.
Remortgage to pay off an IVA
If you have equity in your home, you could arrange a remortgage to clear your IVA early by offering a reduced settlement amount to your creditors. This could be quite a saving to you if your creditors are willing to accept a lower lump sum amount up front, instead of waiting 5 or 6 years to get their money. For example, if you owed £40,000 you could offer your creditors a lump sum final payment now of say £10,000 as a full & final payment saving you £30,000.
It also has the added benefit that your credit rating starts to improve quicker as you would no longer be in an IVA.
If you’re looking for Help to Buy (H2B) Mortgage advice when you have an IVA, I can help. Find out more on Help to Buy Mortgages with an IVA.
For more information on how I can help you find a mortgage after IVA, you have arrears, please call me on: 01494 526400 or complete my online Enquiry Form.