Can I Get a Mortgage with an IVA?

If you’ve entered into an Individual Voluntary Arrangement (IVA), or you’ve completed one in the past, you may be wondering whether getting a mortgage is still possible.

The good news is that an IVA doesn’t automatically mean you’ll never be able to get a mortgage.

Many people assume that because they’ve experienced significant financial difficulties, lenders won’t consider them. Whilst an IVA is viewed more seriously than missed payments, defaults or CCJs, there are lenders who understand that people can rebuild their finances after difficult circumstances.

The key is understanding how lenders assess IVAs and what factors can influence your mortgage options.

The Short Answer

Yes, you may still be able to get a mortgage if you have an IVA.

Whether a lender is willing to consider your application will depend on factors such as:

• Whether the IVA is active or completed
• How long ago the IVA was satisfied
• Your deposit size
• Your income and affordability
• Your overall credit profile
• How your finances have been managed since

Every lender has different criteria, which is why being declined by one lender doesn’t necessarily mean every lender will decline your application.

What Is An IVA?

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors that allows debts to be repaid over a fixed period, usually around five years.

An IVA is legally binding and is often used when someone cannot afford to repay their debts under the original terms.

Debts included in an IVA may include:

• Credit cards
• Personal loans
• Store cards
• Catalogue debts
• Overdrafts
• Other unsecured borrowing

Whilst an IVA can provide a structured route out of debt, mortgage lenders will usually want to understand the circumstances surrounding it.

Can I Get A Mortgage Whilst In An Active IVA?

In most cases, obtaining a mortgage whilst an IVA is still active can be extremely difficult.

Many mainstream and specialist lenders will require the IVA to be completed before considering an application.

There may be very limited exceptions, but generally speaking, most applicants will need to wait until the IVA has been satisfied before meaningful mortgage options become available.

Can I Get A Mortgage After Completing An IVA?

Yes, potentially.

In fact, many people successfully obtain mortgages after completing an IVA.

Once the IVA has been satisfied, lenders will often focus on:

• How long ago it was completed
• Whether there have been any further credit issues
• Your deposit size
• Your affordability
• Your current financial stability

The longer the period since completion, the more lender options may become available.

Does The Age Of The IVA Matter?

Absolutely.

The age of the IVA is often one of the most important factors.

IVA Recently Completed

Mortgage options are usually more limited immediately after completion.

Specialist lenders are typically the most likely to consider these cases.

IVA Completed Within The Last 1-3 Years

Some specialist lenders may be willing to consider applications, particularly where there is a larger deposit available.

IVA Completed More Than 3 Years Ago

As time passes, lender choice often improves significantly.

Applicants may find more lenders become available, particularly where there has been good financial conduct since completion.

IVA Completed More Than 6 Years Ago

Once the IVA becomes more historic and is no longer visible on standard credit reports, many applicants may find they have access to a wider range of mortgage options.

How Much Deposit Do I Need?

Deposit size can have a significant impact on mortgage options following an IVA.

In our experience:

• Larger deposits generally improve lender choice.
• A 10% to 15% deposit is often where options start to improve.
• Some lenders may require a larger deposit depending on how recent the IVA was.

The stronger your deposit position, the more flexibility lenders may have when assessing your application.

Why Do People Enter IVAs?

One thing we’ve learned from helping clients over the years is that an IVA rarely tells the full story.

Common reasons people enter IVAs include:

• Divorce or separation
• Relationship breakdowns
• Redundancy
• Illness
• Business difficulties
• Cost of living pressures
• Unexpected financial hardship

Many people enter an IVA as a way of taking control of their financial situation and resolving debt problems responsibly.

Specialist lenders often recognise this and may be willing to assess the circumstances rather than focusing solely on the IVA itself.

Why Might A Bank Decline Someone With An IVA?

Many high street lenders have strict policies regarding IVAs.

If an applicant falls outside those policies, the lender may simply be unable to proceed.

This is one reason many people wrongly assume they have no mortgage options after an IVA.

The reality is that different lenders assess risk differently.

Whilst mainstream lenders may have restrictions, specialist lenders may be willing to consider applicants who have demonstrated financial stability since completing their IVA.

What Else Do Mortgage Lenders Look At?

An IVA is only one part of the overall assessment.

Lenders will also consider:

Affordability

Can you comfortably afford the proposed mortgage payments?

Deposit

Larger deposits generally create more options.

Income

Stable and sustainable income is important.

Existing Commitments

Current debts and financial commitments will affect affordability calculations.

Recent Financial Conduct

Lenders often want to see evidence that finances have been managed responsibly since the IVA was completed.

Common Myths About IVAs And Mortgages

“I Can Never Get A Mortgage After An IVA”

This is one of the biggest misconceptions we hear.

Many people successfully obtain mortgages after completing an IVA.

“I Must Wait Six Years”

Not necessarily.

Whilst lender choice is often limited immediately after completion, some lenders may consider applications before six years have passed.

“All Lenders Automatically Decline IVA Cases”

Every lender has different criteria.

What one lender won’t consider, another may be willing to assess.

“Once My IVA Is Completed, Everything Returns To Normal Immediately”

Whilst completion is positive, lenders will still want to assess your overall financial position and recent conduct.

Common Mistakes To Avoid

If you’re planning to apply for a mortgage after an IVA, avoid:

Missing Payments On Current Commitments

Recent account conduct remains important.

Taking Out Unnecessary Credit

Additional borrowing can affect affordability and lender choice.

Applying Without Understanding Your Options

Unnecessary applications can result in additional credit searches and declines.

Assuming You Have No Chance

Many people rule themselves out without understanding what lenders may actually be willing to consider.

What We’ve Learned From Helping Clients With IVAs

One thing that consistently surprises people is how many assume an IVA means they’ll never own a property.

In reality, we’ve helped many clients who believed their mortgage aspirations were over, only to discover there were lenders willing to consider them.

We’ve also found that whilst the IVA itself is important, lenders often place significant weight on what has happened since.

Good financial conduct, stable income and a reasonable deposit can all help strengthen an application.

Every case is different, which is why individual assessment is so important.

Frequently Asked Questions

Can I get a mortgage with an active IVA?

In most cases this is extremely difficult, and many lenders will require the IVA to be completed first.

Can I get a mortgage after an IVA?

Potentially, yes. Many people successfully obtain mortgages after completing an IVA.

How much deposit do I need after an IVA?

This varies depending on the lender and how recently the IVA was completed, but larger deposits generally improve lender choice.

Can first-time buyers get a mortgage after an IVA?

Potentially, yes. Having previously been in an IVA doesn’t automatically prevent someone from purchasing their first property.

Is a satisfied IVA viewed better than an active IVA?

Yes. Lenders generally view completed IVAs more favourably than active arrangements.

Final Thoughts

An IVA doesn’t automatically mean you can’t get a mortgage.

Whilst it is one of the more serious forms of adverse credit, there are lenders who may be willing to consider applicants once the IVA has been completed and financial stability has been demonstrated.

The age of the IVA, your deposit size, affordability and overall financial profile will all play an important role in determining what options may be available.

The biggest mistake people make is assuming an IVA has permanently closed the door on mortgage borrowing.

Every lender assesses applications differently, and what one lender won’t consider, another may be willing to review.

If you’ve completed an IVA, don’t automatically assume a mortgage is out of reach. Depending on your circumstances, there may be more options available than you think.

Disclaimer: This article is intended for general information purposes only and should not be considered financial or mortgage advice. Mortgage eligibility and lending criteria vary between lenders and individual circumstances.

Related Bad Credit Mortgage Guides

• Bad credit mortgage options
• Mortgage with defaults
• Mortgage with CCJs
• Missed payments and mortgage approval
• Mortgage with a Debt Management Plan
• Mortgage with a Bankruptcy