Can you get a mortgage with an IVA?

Can you get a mortgage with an IVA?

An Individual Voluntary Arrangement (IVA) is often associated with “bad credit”, and it can feel like a permanent barrier to home ownership. In reality, it may limit your options at first—but it doesn’t automatically rule out getting a mortgage.

Whether you’re buying your first home, moving to a bigger property, or planning a remortgage later, the key factors are usually:

• Whether the IVA has been satisfied and completed
• How long ago the IVA was registered and finished
• Your overall financial position since the IVA
• Your deposit and affordability

This guide explains how an IVA works, how it can affect your credit file, and what to consider when planning a mortgage application.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to repay all or part of your debts. It’s typically arranged through an Insolvency Practitioner and usually runs for up to around five years, depending on the structure of the agreement.

IVAs are commonly used to deal with unsecured debts, such as:

• credit cards
• personal loans
• overdrafts
• some arrears (for example, certain priority debts may be handled differently)

Debts that are secured against your property (such as a mortgage) are generally not repaid through an IVA.

If you keep up with the IVA payments, it can stop creditors from taking further action for the debts included in the arrangement. If you fall behind, the IVA may be varied or fail, and your situation can become more complex.

Does an IVA affect your credit score?

Yes. An IVA is recorded on your credit file and is generally viewed as a significant marker of past financial difficulty.

That doesn’t mean you can never borrow again, but it can:

• reduce your credit score while the IVA is active
• make it harder to pass automated credit checks
• narrow the range of lenders willing to consider your application

It’s also worth understanding that credit scoring is only one part of a mortgage decision. Lenders will also assess affordability, income stability, deposit size, and the overall risk profile of the application.

How long does an IVA stay on your credit file?

An IVA typically remains visible for six years from the date it was first registered. Even if it is marked as completed, it can still be present on your file until that period ends.

Can you get a mortgage with an IVA?

It may be possible, but the answer depends heavily on the status of the IVA.

If your IVA is active (unsatisfied)

While you’re still making IVA payments, many lenders are likely to see the arrangement as an ongoing risk. In practice, this often means fewer options and more scrutiny around affordability.

If your IVA is satisfied (completed)

Once an IVA has been satisfied, some lenders—often specialist mortgage lenders—may consider applications even if the IVA is still showing on your credit file.

The important point is that decisions are usually more case-by-case. Lenders may look at:

• when the IVA was registered
• how long it has been since it was completed
• whether your finances have stabilised
• whether there are any other adverse markers on your file

Because lender criteria can be specific, getting the application prepared correctly can make a meaningful difference.

How long after an IVA can you get a mortgage?

There isn’t one universal waiting period. Different lenders apply different rules.

In general:

• Many mainstream lenders may require the IVA to be removed from your credit history before they’ll consider you.
• Some specialist lenders may consider you earlier, particularly where the IVA is satisfied and your recent conduct looks stable.

When planning your timeline, it can help to think in phases:

1. Completion phase: focus on getting the IVA to a settled, completed position.
2. Stability phase: build a track record of reliable payments and manageable credit use.
3. Application phase: submit an application that clearly addresses the lender’s concerns.

Will an IVA affect your current mortgage?

If you already had a mortgage before entering an IVA, an IVA doesn’t automatically mean your existing mortgage will be cancelled.

However, there are a few practical ways it can still affect your overall position:

• If your IVA required you to release funds or equity (depending on the arrangement), your finances may change.
• When your current deal ends, an IVA may reduce your options for remortgaging or limit the deals available.

If you’re approaching the end of a fixed rate period, it’s usually sensible to plan ahead and understand how your credit file and affordability will be assessed.

How to improve your chances of getting a mortgage after an IVA

If you’re aiming to buy a home after an IVA, lenders will typically want evidence that your finances have moved on from the circumstances that led to the IVA.

Common steps that can strengthen an application include:

1) Ensure the IVA is properly completed

A mortgage application is usually far easier when the IVA is satisfied. Keeping records of completion and any relevant documentation can help when explaining your situation.

2) Check your credit file for accuracy

After an IVA is completed, it’s worth reviewing your credit report to confirm it reflects the correct status. If anything appears inaccurate, correcting it can prevent unnecessary delays.

3) Rebuild your credit behaviour

Even if the IVA remains visible for a period, lenders may still look for signs of improved financial management. Helpful indicators can include:

• paying bills on time
• keeping credit use low
• avoiding new missed payments
• maintaining stable address and employment details where possible

4) Strengthen affordability and deposit position

A larger deposit can reduce the loan-to-value and may improve lender confidence. Equally, having a clear picture of income and outgoings helps lenders assess affordability.

5) Use a broker approach for the right lender match

Because IVA-related criteria can be lender-specific, a broker can help narrow down which lenders are more likely to consider your circumstances and which application details matter most.

Which mortgage lenders will accept applicants with an IVA?

Some specialist lenders may consider applications where the IVA is satisfied, even if it remains on the credit file.

In the UK market, lender acceptance can vary over time and can depend on details such as the length of time since completion and the overall strength of the application.

Rather than focusing on a single lender name, it’s usually more useful to understand that:

• specialist lenders are often more familiar with IVA cases
• mainstream lenders may apply stricter credit file requirements
• the “right” lender depends on your full circumstances, not just the IVA

Can you get a mortgage with an unsatisfied IVA?

It’s generally difficult. While some limited scenarios may exist, most lenders are likely to treat an active IVA as an ongoing financial commitment that affects affordability and risk.

There may also be restrictions within the IVA terms that limit your ability to take on new credit while the arrangement is still running.

If you’re considering a purchase before your IVA is completed, it’s important to understand how your IVA terms interact with mortgage lending requirements.

Frequently asked questions

Can I get a joint mortgage with an IVA?

Yes, it can be possible, but the IVA still needs to be handled carefully. Lenders will assess the IVA status and the overall affordability for the household. If one applicant has an IVA, the application may be treated differently than a standard joint application.

Can I remortgage with an IVA?

If your IVA is satisfied, remortgaging may be possible, but the lender options and deal availability can be more limited—particularly if the IVA is still visible on your credit file.

If your IVA is still active, remortgaging is often more difficult and may be restricted depending on the IVA terms.

Do I have to declare an IVA after it drops off my credit file?

Even if an IVA is no longer visible after the typical credit file period, it may still be relevant to mortgage underwriting. Being accurate and transparent on your application can help avoid problems later.

Can an IVA be removed from my credit report?

An IVA is usually recorded and updated automatically based on the outcome of the arrangement. If there’s an error or the status is incorrect, you may be able to request a correction with the credit reference agency, typically with supporting evidence.

Key takeaways

• An IVA can make mortgage applications harder, but it doesn’t automatically prevent you from getting a mortgage.
• Mortgage lenders are more likely to consider your application once the IVA is satisfied.
• Waiting times vary by lender, and some specialist lenders may consider cases earlier than mainstream options.
• Your deposit, affordability, and recent financial behaviour often matter as much as the IVA itself.

Your home may be repossessed if you do not keep up repayments on your mortgage.