Updated: December 15, 2021

Getting a Mortgage After an IVA

Looking for a mortgage after an Individual Voluntary Arrangement (IVA)? Read our in-depth guide for everything you need to know.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 15, 2021

If you’ve had an Individual Voluntary Arrangement (IVA) in the past it can be difficult getting a mortgage, but it’s certainly not impossible. By following our guide you’ll have a better understanding of the process you should follow to give your mortgage application the best chance of success.

Can you get a mortgage after an IVA?

Yes, it’s possible. Your chances of getting a mortgage when an IVA is still in place would be extremely slim. But once the term of the IVA has ended and all creditors are satisfied that the debt has been cleared then you can begin to think about applying for new lines of credit, including a mortgage.

IVAs remain on your credit history for six years, from the point they’re first registered, and can leave quite a large dent on your record. As a result, many lenders won’t look at mortgage applications from someone who has, or has ever had, an IVA but there’s also plenty who will.

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How long should you wait to apply?

Your IVA is removed from the public insolvency register as soon as the term ends (usually five years), however, it remains on your credit record for a further year after that. It’s at this point you can consider applying for credit again.

There are some lenders who will only consider applications, based on the number of years since the IVA has ended and others whose criteria is based on the number of years since it was first registered.

Lenders eligibility criteria

The table below provides a useful snapshot of how a selection of lenders currently consider applications from someone who has recently had an IVA.

Lender Will consider someone with an IVA? Based on years since IVA first registered Based on years since IVA completed
Accord Yes No Yes – 6 Years
Barclays Yes Yes – 6 Years No
Halifax Yes Yes – 6 Years No
HSBC Yes Yes – 8 Years Yes – 3 years since discharge
Natwest Yes Yes – 6 Years No
Nationwide Yes Yes – 8 Years Yes – 3 years since discharge

So, for example, if your IVA was first registered, say, seven years ago then Barclays would now consider your application whereas HSBC wouldn’t look at it for a further twelve months.

There are other factors and criteria to consider when you apply for a mortgage, which is why using an experienced mortgage broker, rather than going directly to a lender, can make all the difference.

They’ll be able to help you prepare all the necessary evidence and documentation to give your application the best possible chance of success.

How to boost your chances of mortgage approval after an IVA

If you’ve had an IVA in the past and now want to consider applying for a mortgage, there’s a few steps you can take to improve your chances…

Step 1. Rebuild your credit record

After six years your credit record’s going to look pretty empty but there’s a number of things you can, and should, do to rebuild your score:

  • First things first – check your credit score to make sure the IVA has been removed. Then make sure to keep checking on a regular basis. Websites such as Clearscore and Experian offer this service usually on a fee-free basis
  • Make sure you’re registered on the electoral roll at your current address
  • Keep all utility bills and council tax payments up to date
  • Apply for small credit lines first – car/home insurance etc. and then build up from there without overextending

Step 2. Build up a deposit

Anyone who’s had an IVA in the past will be considered a higher risk by a lender. This means the deposit requirements you’ll be asked for will likely be higher than for someone with a clean record.

How much you’ll need for a deposit will vary depending on the lender, however, aim to save somewhere between 15%-25%, which is quite a healthy amount and will give lenders more confidence when looking at your application.

Step 3. Speak with a mortgage broker who has experience with IVAs

The smartest move you can make is speaking with a broker before you consider approaching any lenders. Even though your IVA may have been removed from your credit record, you’ll still have to declare that you’ve had one when you apply for a mortgage.

An experienced mortgage broker will know how to frame the details on your application and understand what additional evidence you’ll need.

At Online Money Advisor, we spend time finding out what your requirements are so we can find a broker who has the appropriate expertise to help with your situation. If you get in touch we can start those discussions straight away.

Can you remortgage with an IVA?

One of the benefits of an IVA over declaring yourself bankrupt is that, normally, your home remains outside any agreement reached with creditors. So, remortgaging is an option with certain lenders but, as with a new mortgage, it wouldn’t be straightforward.

The same process would apply as that outlined above for new applications. Remortgaging is possible if sufficient equity exists and you’ve been able to rebuild your credit record.

Get matched with a specialist bad credit mortgage broker

Getting a mortgage after an IVA is difficult but certainly not impossible. Your best chance of success is to first ask for assistance from someone who has prior knowledge of dealing with these type of applications.

Call 0808 189 0463 or make an enquiry and we can arrange a free, no-obligation call with a mortgage broker who has experience of IVAs today.

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We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in bad credit mortgages. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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