Getting a Mortgage After an IVA

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.

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.

The above information was correct at the time of writing (October 2021). However lenders reserve the right to amend their criteria at any time. 

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…

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.