Mortgage After DRO or IVA – Can You Get Approved? Expert Advice

Mortgage After DRO or IVA – Can You Get Approved?

If you’re exploring your options for a mortgage after DRO or IVA, you’re not alone. Many people who’ve completed a Debt Relief Order or Individual Voluntary Arrangement worry that their home-buying goals are out of reach — but that’s not the case.

At Mortgage Bridge, we help clients every week who’ve recently had a DRO or IVA removed from their credit file. While high-street banks can be cautious, specialist lenders often take a more flexible view. With the right preparation, a mortgage after DRO or IVA is absolutely achievable.

What Is a DRO or IVA and How Long Does It Stay on Your Credit File?

A Debt Relief Order (DRO) and an Individual Voluntary Arrangement (IVA) are both formal debt solutions that help people regain financial control.

  • DRO: lasts 12 months and covers smaller debts for those with limited income.
  • IVA: usually 5–6 years with structured monthly repayments.

Both remain visible on your credit report for six years from the start date. After that, they’re automatically removed — giving you the clean slate lenders want to see when assessing a mortgage after DRO or IVA.

Can You Get a Mortgage After a DRO or IVA?

Yes — you can. The moment your arrangement drops off your credit file, your position improves. However, lenders may still ask if you’ve ever had one, so honesty matters.

Here’s how lenders usually view timing for a mortgage after DRO or IVA:

  • Immediately after removal: a few specialist lenders may consider you.
  • 6–12 months later: more lenders become open to your application.
  • 2+ years later: you’ll have near-normal mortgage options if credit stays clean.

How Much Deposit Will You Need?

Deposit size plays a key role in approval odds. For a mortgage after DRO or IVA, expect:

  • 15–25 % deposit if you apply soon after removal.
  • 10–15 % deposit after a year of stable credit.
  • 5–10 % deposit once your record has been clear for several years.

A larger deposit signals lower risk to lenders and helps secure better rates. Family-gifted deposits are fine — just ensure the funds are declared as a genuine gift, not a loan.

How Do Lenders Assess a Mortgage After DRO or IVA?

Every lender has its own policy, but most consider:

✅ Your recent credit behaviour.
✅ Income stability and affordability.
✅ Size of deposit.
✅ Time since the DRO or IVA ended.
✅ Evidence of reliable money management.

High-street banks may still decline, but specialist lenders often review each case manually, taking context into account. That’s where we come in — we know which lenders are open to applicants seeking a mortgage after DRO or IVA.

How to Rebuild Your Credit Before Applying

If your DRO or IVA has only recently ended, take time to strengthen your profile:

  1. Check all credit files (Experian, Equifax, TransUnion).
  2. Register to vote at your current address.
  3. Keep bills paid on time.
  4. Avoid new borrowing for a few months.
  5. Keep credit card balances under 30 %.

These simple steps demonstrate discipline and reliability — two things lenders love to see when reviewing a mortgage after DRO or IVA.

Can You Get a Mortgage with Bad Credit After a DRO or IVA?

Yes. Even if your credit isn’t perfect yet, some lenders specialise in bad credit mortgages, including those for applicants seeking a mortgage after DRO or IVA.

They’ll mainly look for stability: up-to-date bills, manageable debt, and consistent income. If you’ve been financially steady for at least six months, your options improve significantly.

How Much Can You Borrow After a DRO or IVA?

Most lenders offer around 4 to 4.5 times annual income, depending on affordability and credit status.

For example, with an income of £40,000, borrowing potential may be £160,000 – £180,000. Our advisers can calculate this precisely and find lenders best matched to your profile.

What Documents Will You Need?

Gathering documents early speeds things up:

  • Proof of income (payslips, P60s, or accounts).
  • Bank statements for 3–6 months.
  • Proof of deposit/source of funds.
  • ID and proof of address.
  • DRO or IVA completion confirmation (if requested).

Being organised shows lenders that you’re responsible and ready.

Final Thoughts: Your Past Doesn’t Define Your Future

Having had a DRO or IVA doesn’t mean you can’t own a home. Once it’s removed, you’ve already made huge progress.

With the right guidance, stable income, and a realistic deposit, a mortgage after DRO or IVA is completely within reach.

If you’re ready to explore your options, let’s talk — we’ll help you find a lender who recognises how far you’ve come.