Mortgage After DRO or IVA – Can You Get Approved?
If you’ve had a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA), it’s completely normal to worry that home ownership may now be out of reach. Many people assume these types of debt solutions mean an automatic and permanent “no” from mortgage lenders.
The reality is far more balanced. Getting a mortgage after a DRO or IVA is possible, but it requires the right timing, realistic expectations, and careful lender selection.
At Mortgage Bridge, we specialise in helping people move forward after financial difficulties. In this guide, we explain how DROs and IVAs affect mortgage applications, what lenders really look for, and how you can improve your chances of approval.
What Is a DRO or IVA?
Before looking at mortgage options, it’s important to understand how lenders view these arrangements.
What Is a Debt Relief Order (DRO)?
A DRO is a formal debt solution designed for people with low income, minimal assets, and relatively small levels of debt. It typically lasts 12 months, after which qualifying debts are written off.
What Is an Individual Voluntary Arrangement (IVA)?
An IVA is a formal agreement with creditors to repay part of your debt over a set period, usually several years. Once completed, remaining qualifying debts are written off.
Both are forms of insolvency and are recorded on your credit file.
Can You Get a Mortgage After a DRO or IVA?
Short answer: yes — in some circumstances.
Having had a DRO or IVA does not permanently prevent you from getting a mortgage. However, it does affect:
- Which lenders will consider you
- How long you may need to wait
- Deposit requirements
- Interest rates available
Approval depends on whether the DRO or IVA is ongoing, recently completed, or historic.
Can You Get a Mortgage While in a DRO or IVA?
In most cases, mortgage options are extremely limited while a DRO or IVA is still active.
- During a DRO: Mortgage approval is very unlikely, as DROs are designed for people with no spare income or assets.
- During an IVA: Some lenders may consider very specific scenarios, but this is rare and usually requires creditor consent and strong affordability.
Most successful mortgage applications happen after the DRO or IVA has been completed.
How Long After a DRO or IVA Can You Apply for a Mortgage?
There is no single rule, but lenders generally look at:
- Whether the DRO or IVA has been completed
- How long it has been since completion
- Your financial behaviour since
Typical patterns include:
- Shortly after completion: Very limited options, usually with specialist lenders and higher deposits
- Several years after completion: More lenders become available if credit has been well managed
- Once the record drops off your credit file: Wider choice, assuming no further credit issues
Time, combined with improved behaviour, plays a major role.
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How Do Lenders Assess Mortgage Applications After a DRO or IVA?
Lenders focus on the following key areas:
Credit Behaviour Since Completion
Clean, consistent payment history since the DRO or IVA ended is critical. New missed payments can significantly reduce options.
Affordability
Lenders want clear evidence that you can comfortably afford mortgage repayments now, even after stress testing.
Deposit Size
A larger deposit helps offset the perceived risk of past insolvency.
Stability
Stable income, consistent employment, and sensible bank statements all work in your favour.
How Much Deposit Do You Need After a DRO or IVA?
Deposit requirements are usually higher than standard mortgages.
Typical expectations may include:
- 15–20% deposit for older, completed DROs or IVAs
- Higher deposits where issues are more recent
The stronger your deposit, the more lender options you’re likely to have.
Will Mortgage Rates Be Higher After a DRO or IVA?
Often, yes — at least initially.
Specialist lenders may charge higher rates to reflect increased risk. However, this doesn’t mean you’re locked in forever. Many borrowers:
- Start with a specialist mortgage
- Rebuild their credit
- Remortgage later onto better rates
The first mortgage is often a stepping stone, not the final destination.
Can You Get a Mortgage After a DRO or IVA with Bad Credit Issues Since?
It becomes more challenging if there have been further issues, such as:
- Missed payments after completion
- New defaults or arrears
That said, all is not necessarily lost. Lenders will assess:
- How recent the new issues were
- Whether they were isolated
- How your overall situation has improved
Specialist advice is particularly important in these cases.
Common Myths About DROs, IVAs, and Mortgages
“You can never get a mortgage after insolvency.”
False — many people do.
“You must wait until everything drops off your credit file.”
Not always — approval may be possible before then.
“All lenders treat DROs and IVAs the same way.”
Incorrect — criteria vary significantly.
How to Improve Your Chances of Approval
If you’re aiming for a mortgage after a DRO or IVA, focus on:
- Keeping all payments up to date
- Avoiding new credit problems
- Reducing existing debts
- Saving as strong a deposit as possible
- Keeping bank statements clean and consistent
Preparation and patience make a real difference.
How Mortgage Bridge Helps After a DRO or IVA
This is one of our specialist areas.
At Mortgage Bridge, we:
- Review your credit file in detail
- Assess lender appetite before applying
- Advise on timing and preparation
- Match you with lenders suited to post-insolvency cases
- Structure applications to reduce decline risk
We’re here to help if you want an honest, realistic assessment of your options.
Key Takeaways
- A mortgage after a DRO or IVA is possible in the right circumstances
- Approval is more likely after completion
- Deposit size plays a major role
- Specialist lenders offer more flexibility
- Time and clean credit behaviour improve options
Summary
Getting a mortgage after a DRO or IVA can feel daunting, but it is often achievable with the right approach. Lenders focus less on the fact that insolvency happened and more on what has changed since — including affordability, stability, and responsible financial behaviour.
With realistic expectations, a suitable deposit, and access to lenders experienced in post-insolvency cases, many borrowers successfully move into home ownership after a DRO or IVA. Understanding lender criteria and seeking expert guidance can make the difference between repeated setbacks and a successful outcome.
This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.