Mortgage after an IVA

Steven Neale
By Published On: March 6, 2023Last Updated: July 11, 2024

STOP PRESS 18th JUNE 2024

95% mortgages available once your IVA has been cleared for only  24 months!

Can I get a mortgage with an IVA?

Yes, it is possible to get a mortgage with an IVA. As with most credit issues, the specific details of the IVA, such as when it started and whether it has been cleared, will determine which lenders can offer a mortgage and on what terms.

High street banks are very unlikely to offer a mortgage to anyone with an IVA, even if it has been cleared. However, there are several specialist mortgage lenders in the UK who will provide mortgages to those with an IVA.

How will an IVA affect my mortgage application?

Naturally any bad credit issue on your credit file will be a red flag for most lenders on a typical mortgage application, and an IVA is no different. As mentioned, for applications with high street banks, it will usually result in an application being declined.

When applying for a mortgage when you have an IVA, it’s vitally important to first understand the lending criteria of the lender you’re applying with. Otherwise you may be applying with lenders who simply would not accept, and fall into the trap of multiple mortgages application being declined, which will itself result in further damage to your credit file.

As a qualified and experienced bad credit mortgage advisor, I know the exact details of which lenders will provide mortgages with an IVA, and crucially, their full list of lending criteria. This means you will only ever apply with lenders where you fit the criteria and are likely to be accepted first time.

Do you have to declare an IVA on your mortgage application?

Yes, absolutely. Any debts must be declared when applying for a mortgage. It is incredibly important, and a legal requirement, to be completely truthful when applying for a mortgage. In addition, the lender’s credit checks will almost certainly identify any debts registered to you, including an IVA if one is in place.

How long after an IVA can you get a mortgage?

If your IVA has been cleared for a few years, this will greatly improve the chance of being accepted for a mortgage. However, if your IVA has been recently added to your credit file, there are still a handful of lenders who would be willing to offer you a mortgage. 

The timing of your IVA will not only impact your chances of success, it will also be a key factor in the type of mortgage you are offered in terms of the required deposit and interest rate. I can talk you through your options and help you decide when might be the best time to apply for a mortgage with an IVA.

Does your IVA need to be cleared before you can get a mortgage?

23rd June 2023 – At the moment, yes your IVA would have to be cleared however there are lenders who would consider you for a mortgage the day after your IVA has been satisfied.

What is the lending criteria for a mortgage with an IVA?

Every mortgage lender will have their own lending criteria for mortgages with IVAs. Some lenders will only consider applications where the IVA has been cleared for several years, while some are happy to lend to those with a more recent IVA.

The same is true for general lending criteria, such as minimum income, employment status, property type, and criteria around other credit issues not relating to an IVA. 

I work with a wide range of adverse credit mortgage lenders and can quickly match your specific circumstances to a lender’s criteria, ensuring you only apply with lenders where you meet their application criteria, and avoid spiraling into numerous application rejections.

How much can you borrow with an IVA?

Applying for a mortgage with an IVA doesn’t typically impact the overall amount you can borrow. The amount you can borrow with an IVA will be largely determined by your income and affordability.

Having had an IVA when applying for a mortgage will impact the loan-to-value (LTV) which is the percentage of the property which you can mortgage against, with the deposit making up the rest of the amount.

What deposit will you need for a mortgage with an IVA?

The LTV and required deposit required will largely come down to the specific circumstance of your IVA, as well as other factors on your application. Generally, the longer ago the IVA was registered on your credit file, the lower the required deposit will be. Whether the IVA is cleared will also play a big factor in the size of deposit required.

Different lenders will have their own rules around required deposits for mortgages with an IVA, but the figures below is what you might typically expect to see:

Deposit LTV IVA Status
5% 95% IVA was started and cleared over 6 years ago
10% 90% IVA was cleared over 3 years ago
20% 80% IVA cleared

Which lenders can provide a mortgage with an IVA?

I work with several specialist mortgage lenders who can help those with credit issues to get onto the property ladder. Around half of these lenders will consider applications from those with an IVA registered on their credit file.

The vast majority of lenders who provide mortgages with IVAs only consider applications which come via a broker, and they all have their own specific lending criteria. These are 2 key reasons to speak to a specialist adverse credit mortgage broker rather than attempting to go directly to a lender for an IVA mortgage.

Getting a Help to Buy mortgage with an IVA

If you’re looking to get a Help to Buy mortgage with an IVA, there are several lenders who will consider your application. However, most lenders will require that your IVA has been cleared before your completion date, if you plan to use the Help to Buy scheme.

For more information on getting a Help to Buy mortgage, see the Help to Buy with bad credit guide or get in touch.

Getting a Right to Buy mortgage with an IVA

If you’re looking to buy your council property through the Right to Buy scheme but have an IVA, I work with many lenders who will consider your application. These lenders each have different criteria, but generally cover the full spectrum of IVAs – from those who had an IVA several years ago and is now clear, to those with a more recent IVA which is still running.

Take a look at our dedicated Right to Buy mortgages with bad credit guide for further information, or get in touch and I can discuss your specific circumstances and let you know whether a lender is likely to accept your application.

Getting a Shared Ownership mortgage with an IVA

Unlike the other Government schemes, getting a Shared Ownership mortgage with an IVA is a much trickier process due to the very limited number of lenders who will consider your application. 

If you have an IVA and are considering a Shared Ownership mortgage, see our dedicated guide to Shared Ownership mortgages with bad credit, or get in touch to discuss your requirements. If I’m unable to match you with a lender for Shared Ownership, I can still give you an idea of your other options for applying for a mortgage with an IVA.

How a mortgage advisor can help with IVAs

The role of a mortgage advisor, particularly for applications with IVAs, is to understand your situation and match you with the best lender for your circumstances. This requires a full understanding of lending criteria, both around IVAs and in general.

I have decades of experience in helping those with IVAs to get a mortgage, and ensuring they get the application right first time, as well as getting the best deal available for them. 

For more information or to discuss your application, please call me on 01494 526 400 or complete my online enquiry form today.

FAQs

An IVA (Individual Voluntary Agreement) is a legal agreement between yourself and your creditors to pay off some or all of your debts over a given period. An IVA will usually be made up of a fixed regular payment split between 1 or more creditors to reduce the overall debt over time.

Like most bad credit marks, an IVA will stay on your credit file for 6 years from the date it was first registered (formally agreed). If you clear the balance of your IVA before the 6 years, it will still remain on your credit file, but be marked as ‘complete’.

It’s important to note that any individual debts which are included in the IVA may still be reported as separate accounts on your credit file, and will remain there for 6 years since they were first added.

The term ‘IVA mortgage’ is used to refer to mortgage products which accept applications from those with an IVA on their credit file. This is a general umbrella term for mortgages where the lending criteria allows for applications where there is or has been an IVA in place within the last 6 years.

Yes, there are several lenders who will consider applications from those looking to remortgage with or after an IVA. The rules and lending criteria, as discussed in this guide, will not differ too much between those looking to remortgage and those looking for their first mortgage with an IVA.

Yes it is possible to get a joint mortgage where one of the applicants has an IVA registered on their credit file. Each lender will have their own unique lending criteria for such circumstances. Your chances of success will largely depend on the specific details of the IVA, as well as credit worthiness for both applicants in general, as well as standard things like income and affordability.

Yes, there’s nothing to stop you from selling your home if you have an IVA. However, it’s common for IVA companies to request that some equity is released from a home to help pay off some of your debts, so this should be considered if you are in the early stages of thinking about an IVA.

If your IVA is complete, you can sell your home without any consideration for the IVA. However if you’re selling and need to mortgage some or part of a new property, having the cleared IVA on your credit file will impact your chances of success.

A quick overview of the topics covered in this article.

Latest articles

Mortgage after an IVA

Steven Neale
By Published On: March 6, 2023Last Updated: July 11, 2024

STOP PRESS 18th JUNE 2024

95% mortgages available once your IVA has been cleared for only  24 months!

Can I get a mortgage with an IVA?

Yes, it is possible to get a mortgage with an IVA. As with most credit issues, the specific details of the IVA, such as when it started and whether it has been cleared, will determine which lenders can offer a mortgage and on what terms.

High street banks are very unlikely to offer a mortgage to anyone with an IVA, even if it has been cleared. However, there are several specialist mortgage lenders in the UK who will provide mortgages to those with an IVA.

How will an IVA affect my mortgage application?

Naturally any bad credit issue on your credit file will be a red flag for most lenders on a typical mortgage application, and an IVA is no different. As mentioned, for applications with high street banks, it will usually result in an application being declined.

When applying for a mortgage when you have an IVA, it’s vitally important to first understand the lending criteria of the lender you’re applying with. Otherwise you may be applying with lenders who simply would not accept, and fall into the trap of multiple mortgages application being declined, which will itself result in further damage to your credit file.

As a qualified and experienced bad credit mortgage advisor, I know the exact details of which lenders will provide mortgages with an IVA, and crucially, their full list of lending criteria. This means you will only ever apply with lenders where you fit the criteria and are likely to be accepted first time.

Do you have to declare an IVA on your mortgage application?

Yes, absolutely. Any debts must be declared when applying for a mortgage. It is incredibly important, and a legal requirement, to be completely truthful when applying for a mortgage. In addition, the lender’s credit checks will almost certainly identify any debts registered to you, including an IVA if one is in place.

How long after an IVA can you get a mortgage?

If your IVA has been cleared for a few years, this will greatly improve the chance of being accepted for a mortgage. However, if your IVA has been recently added to your credit file, there are still a handful of lenders who would be willing to offer you a mortgage. 

The timing of your IVA will not only impact your chances of success, it will also be a key factor in the type of mortgage you are offered in terms of the required deposit and interest rate. I can talk you through your options and help you decide when might be the best time to apply for a mortgage with an IVA.

Does your IVA need to be cleared before you can get a mortgage?

23rd June 2023 – At the moment, yes your IVA would have to be cleared however there are lenders who would consider you for a mortgage the day after your IVA has been satisfied.

What is the lending criteria for a mortgage with an IVA?

Every mortgage lender will have their own lending criteria for mortgages with IVAs. Some lenders will only consider applications where the IVA has been cleared for several years, while some are happy to lend to those with a more recent IVA.

The same is true for general lending criteria, such as minimum income, employment status, property type, and criteria around other credit issues not relating to an IVA. 

I work with a wide range of adverse credit mortgage lenders and can quickly match your specific circumstances to a lender’s criteria, ensuring you only apply with lenders where you meet their application criteria, and avoid spiraling into numerous application rejections.

How much can you borrow with an IVA?

Applying for a mortgage with an IVA doesn’t typically impact the overall amount you can borrow. The amount you can borrow with an IVA will be largely determined by your income and affordability.

Having had an IVA when applying for a mortgage will impact the loan-to-value (LTV) which is the percentage of the property which you can mortgage against, with the deposit making up the rest of the amount.

What deposit will you need for a mortgage with an IVA?

The LTV and required deposit required will largely come down to the specific circumstance of your IVA, as well as other factors on your application. Generally, the longer ago the IVA was registered on your credit file, the lower the required deposit will be. Whether the IVA is cleared will also play a big factor in the size of deposit required.

Different lenders will have their own rules around required deposits for mortgages with an IVA, but the figures below is what you might typically expect to see:

Deposit LTV IVA Status
5% 95% IVA was started and cleared over 6 years ago
10% 90% IVA was cleared over 3 years ago
20% 80% IVA cleared

Which lenders can provide a mortgage with an IVA?

I work with several specialist mortgage lenders who can help those with credit issues to get onto the property ladder. Around half of these lenders will consider applications from those with an IVA registered on their credit file.

The vast majority of lenders who provide mortgages with IVAs only consider applications which come via a broker, and they all have their own specific lending criteria. These are 2 key reasons to speak to a specialist adverse credit mortgage broker rather than attempting to go directly to a lender for an IVA mortgage.

Getting a Help to Buy mortgage with an IVA

If you’re looking to get a Help to Buy mortgage with an IVA, there are several lenders who will consider your application. However, most lenders will require that your IVA has been cleared before your completion date, if you plan to use the Help to Buy scheme.

For more information on getting a Help to Buy mortgage, see the Help to Buy with bad credit guide or get in touch.

Getting a Right to Buy mortgage with an IVA

If you’re looking to buy your council property through the Right to Buy scheme but have an IVA, I work with many lenders who will consider your application. These lenders each have different criteria, but generally cover the full spectrum of IVAs – from those who had an IVA several years ago and is now clear, to those with a more recent IVA which is still running.

Take a look at our dedicated Right to Buy mortgages with bad credit guide for further information, or get in touch and I can discuss your specific circumstances and let you know whether a lender is likely to accept your application.

Getting a Shared Ownership mortgage with an IVA

Unlike the other Government schemes, getting a Shared Ownership mortgage with an IVA is a much trickier process due to the very limited number of lenders who will consider your application. 

If you have an IVA and are considering a Shared Ownership mortgage, see our dedicated guide to Shared Ownership mortgages with bad credit, or get in touch to discuss your requirements. If I’m unable to match you with a lender for Shared Ownership, I can still give you an idea of your other options for applying for a mortgage with an IVA.

How a mortgage advisor can help with IVAs

The role of a mortgage advisor, particularly for applications with IVAs, is to understand your situation and match you with the best lender for your circumstances. This requires a full understanding of lending criteria, both around IVAs and in general.

I have decades of experience in helping those with IVAs to get a mortgage, and ensuring they get the application right first time, as well as getting the best deal available for them. 

For more information or to discuss your application, please call me on 01494 526 400 or complete my online enquiry form today.

FAQs

An IVA (Individual Voluntary Agreement) is a legal agreement between yourself and your creditors to pay off some or all of your debts over a given period. An IVA will usually be made up of a fixed regular payment split between 1 or more creditors to reduce the overall debt over time.

Like most bad credit marks, an IVA will stay on your credit file for 6 years from the date it was first registered (formally agreed). If you clear the balance of your IVA before the 6 years, it will still remain on your credit file, but be marked as ‘complete’.

It’s important to note that any individual debts which are included in the IVA may still be reported as separate accounts on your credit file, and will remain there for 6 years since they were first added.

The term ‘IVA mortgage’ is used to refer to mortgage products which accept applications from those with an IVA on their credit file. This is a general umbrella term for mortgages where the lending criteria allows for applications where there is or has been an IVA in place within the last 6 years.

Yes, there are several lenders who will consider applications from those looking to remortgage with or after an IVA. The rules and lending criteria, as discussed in this guide, will not differ too much between those looking to remortgage and those looking for their first mortgage with an IVA.

Yes it is possible to get a joint mortgage where one of the applicants has an IVA registered on their credit file. Each lender will have their own unique lending criteria for such circumstances. Your chances of success will largely depend on the specific details of the IVA, as well as credit worthiness for both applicants in general, as well as standard things like income and affordability.

Yes, there’s nothing to stop you from selling your home if you have an IVA. However, it’s common for IVA companies to request that some equity is released from a home to help pay off some of your debts, so this should be considered if you are in the early stages of thinking about an IVA.

If your IVA is complete, you can sell your home without any consideration for the IVA. However if you’re selling and need to mortgage some or part of a new property, having the cleared IVA on your credit file will impact your chances of success.

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Martin – 2nd January 2024

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