Getting a Mortgage with an IVA

The definitive guide to getting a mortgage with an IVA, everything you need to know about mortgages with an IVA.

What is an IVA?

An Individual Voluntary Arrangement or IVA is an agreement with your creditors to repay all or some of your debt over time. This can be more beneficial for controlling your assets than bankruptcy and may be the best course of action for some people.

How Hard Is It To Get A Mortgage With An IVA?

It can be difficult getting a mortgage with an IVA, especially before it has been satisfied. An IVA usually takes 5 years from the date it is registered to be satisfied. Even once satisfied many lenders will still not consider you for a mortgage until satisfied for more than 3 years. However, there are always options, so it is well worth speaking to a specialist IVA mortgage broker to see what your options are.

An IVA mortgage calculator may also be useful to see what your options may be, our mortgage calculator is suitable for people that are wanting to know how much they may be able to borrow whilst getting a mortgage with an IVA.

How Many Years After An IVA Can I Get A Mortgage?

Most lenders will want your IVA to be satisfied, for most people this usually takes 5 years from the date it was registered. This will most likely be the absolute earliest you can get a mortgage with an IVA. However, most lenders require between 3-6 years after the IVA has been satisfied. There are a minority of lenders that will consider someone once the IVA has been discharged (satisfied), so it is worth speaking to a specialist IVA mortgage broker that can go through your options.

Do I Have To Declare IVA On Mortgage Application?

Most lenders will have a question about whether you have ever had an IVA. However, each mortgage application is different, and some lenders may not ask the question. If you are completing your mortgage application yourself it is important to ensure you answer the questions accurately. If an IVA mortgage broker is making the application on your behalf they will ensure that the lender they recommend is suitable for your situation.

Can I Buy A New House With An IVA?

It is possible to buy a new house with an IVA, however it will largely depend on how long ago your IVA was. Buying a new house can be stressful, and adding in trying to overcome an IVA on your mortgage application will increase the pressure of the situation. We highly recommend speaking to a specialist IVA mortgage broker that can advise you quickly and efficiently on your options.

Can I Get A Mortgage If I Pay My IVA Off Early?

Yes, generally lenders are concerned with the date that the IVA has been satisfied, so getting a mortgage with an IVA that has been paid off early is entirely possible. Most lenders want to wait 3+ years after your IVA has been satisfied, even if paid off early. However, you may find that some lenders are willing to lend to you as soon as the IVA has been paid off.

Can I Get A Joint Mortgage With An IVA

If you have satisfied your IVA you may be able to get a joint mortgage. However, as with the other questions we have answered here, you may have to wait a few years. There are some lenders that would consider you sooner, but not many. We recommend speaking to a specialist IVA mortgage broker to see whether you are eligible.

How Long After An IVA Can I Get A Mortgage

You may be able to get a mortgage immediately after an IVA has been satisfied. This will largely depend on your credit score. We recommend checking your credit score regularly to see how it looks and what is showing on your credit report.

If you are considering getting a mortgage with an IVA we recommend providing a copy of your credit report to your IVA mortgage broker.

How Much Deposit Do I Need When Getting A Mortgage With An Iva?

When getting a mortgage with an IVA the main variable will be how long since it has been discharged. If your IVA has only just been satisfied you will likely need a 20% or more deposit. However, if your IVA has been satisfied for a few years you may be able to get a mortgage with a lower deposit percentage.

Getting A Mortgage With An Iva Mortgage Calculator

One of the best ways of working out how much you can borrow whilst getting a mortgage with an IVA is using a mortgage calculator. Ours is specially designed for ease of use, and is compatible with getting a mortgage with an IVA.

Should I use An Iva Mortgage Broker?

We highly recommend speaking to a specialist IVA mortgage broker to ensure you are getting the best deal for your situation. Depending on how long your IVA has been satisfied this could be a different lender to what you were expecting, and you may be able to apply for a better product than you thought possible.

Challenges in the Mortgage Process with IVA

Navigating the mortgage process with an IVA presents distinct challenges. Lenders often perceive applicants with an IVA as higher-risk borrowers, which can lead to the imposition of more stringent lending criteria. This might include higher interest rates and larger deposit requirements. Additionally, the range of available mortgage products may be limited, requiring borrowers to explore specialist lenders. Another significant hurdle is the impact of an IVA on your credit score, which can affect your eligibility for competitive mortgage offers.

Individual Voluntary Arrangement Mortgage Options

When considering an individual voluntary arrangement mortgage, it’s crucial to understand the available options. Specialist lenders often provide tailored mortgage products for those with an IVA, focusing on the borrower’s current financial behaviour rather than past difficulties.

However, these options may come with higher interest rates and require a larger deposit compared to standard mortgage products. It’s important to evaluate the terms and conditions of each option carefully. Engaging with a knowledgeable mortgage broker can be beneficial; they can navigate the available products and negotiate terms suited to your circumstances.

Tips for Boosting Credit Scores

Boosting your credit score post-IVA is essential for improving your chances in the mortgage process. Begin by ensuring that your IVA is correctly marked as “satisfied” on your credit report, as this reflects your completion of the arrangement. Regularly reviewing your credit report can help you identify and correct any inaccuracies. Additionally, maintain a consistent payment history with any ongoing financial obligations, as timely payments contribute positively to your credit profile.

Keep credit card balances low, ideally below 30% of your available credit limit. It’s also beneficial to limit new credit applications, as frequent inquiries can negatively impact your score. Set up direct debits to avoid missed payments and show creditors your financial reliability.

Financial Difficulties and Mortgages: Overcoming Hurdles

Overcoming the hurdles of financial difficulties and mortgages requires a strategic approach. Start by understanding that lenders assess your entire financial picture, not just past challenges. Rebuilding trust with lenders involves demonstrating financial stability and responsibility. Create a detailed budget to manage expenses effectively and prevent future financial strain. Additionally, focus on addressing outstanding debts, as reducing debt levels can enhance your appeal to potential lenders.

It’s crucial to save for a substantial deposit, which can help reassure lenders. Finding an IVA mortgage broker experienced in handling cases involving IVAs can provide valuable insights and guidance. They can help you explore mortgage products that align with your current financial situation.

Navigating the Mortgage Process with an IVA

Navigating the mortgage process with an IVA requires careful planning and the right resources. Begin by researching lenders that specialize in working with individuals who have completed IVAs. These lenders understand the complexities involved and are more likely to offer suitable mortgage products. It’s also beneficial to work with a mortgage broker who has experience in this area. They can provide personalized advice and access to a wider range of mortgage options.

Mortgage with an IVA