IVA mortgages for moving home

Moving home with an IVA: what to expect

If you’re planning to move while you have an Individual Voluntary Arrangement (IVA), it’s natural to worry that your mortgage options will be limited. An IVA can affect how lenders view your credit history and overall risk.

The position is not always straightforward, but it’s also not automatically a dead end. With the right approach—timing, documentation, and the right mortgage strategy—it may be possible to secure a mortgage for your next property.

This guide is aimed at home movers: people who already own a home or have an existing mortgage and are moving to a new one.

Home mover vs first-time buyer: why it matters

As a home mover, you may have advantages that first-time buyers may not.

Repayment track record: you may already have demonstrated that you can meet mortgage payments.
Equity and loan-to-value (LTV): if you’ve built up equity, your new mortgage may be based on a more favourable LTV than your original purchase.
More information for lenders: lenders can often assess your existing mortgage performance and affordability more directly.

That said, an active IVA can still be a key factor in lender decision-making.

How an IVA can affect mortgage applications

An IVA is a formal agreement to repay debts under agreed terms. Because it’s legally binding, it’s typically viewed as an indicator that you’ve had financial difficulty in the past.

When you apply for a mortgage, lenders may consider:

Whether the IVA is current or recently completed
The stage of the IVA (for example, how long you’ve been paying and whether payments are up to date)
Your overall affordability based on income and outgoings
Any additional adverse credit markers that may exist alongside the IVA

Some lenders may be cautious about offering a mortgage while an IVA is active, while others may consider cases on their individual merits—particularly where the rest of your profile is strong.

Permission from your Insolvency Practitioner (IP)

Because an IVA is a legal arrangement, you’ll generally need permission from your Insolvency Practitioner (IP) before taking on new credit—this commonly includes a mortgage.

Your IP will typically want to understand:

Why you need the mortgage (for example, moving for work, family needs, or changing circumstances)
Whether the new monthly payments are affordable
How the mortgage fits with the IVA repayment plan

The outcome of the IP’s review can influence what mortgage options are realistically available.

Porting your mortgage vs applying for a new one

When moving home, there are two common routes:

1) Porting (moving your existing mortgage to the new property)

Porting can be attractive because it may reduce the need to re-qualify from scratch—depending on the terms of your current mortgage.

However, porting is not always possible, and the presence of an IVA can still affect whether the lender will allow the arrangement to continue on the new property.

2) Applying for a new mortgage

If porting isn’t available, or if your circumstances require a different deal, you may need to apply for a mortgage with a new lender.

In this scenario, the IVA is likely to be a more prominent factor in underwriting. A specialist approach can help ensure your application is presented in a way that addresses the key concerns lenders may have.

Loan-to-value (LTV) and affordability: the practical levers

Even with an IVA, lenders will usually focus on two practical areas:

LTV: the lower the LTV, the less risk a lender may perceive.
Affordability: whether your income supports the mortgage payments alongside your existing financial commitments.

For home movers, equity from your current property can sometimes help improve LTV. But it’s still important to consider the full cost of moving and owning a new home, including stamp duty, legal fees, and any changes to monthly outgoings.

What information lenders may ask for

While requirements vary by lender, applications involving an IVA often involve extra scrutiny. You may be asked to provide evidence around:

Your IVA status and confirmation of payments
Your current income and employment details
Your monthly expenditure and financial commitments
Details of the property you’re buying (purchase price and any relevant factors affecting risk)

Having clear, consistent documentation can make the process smoother.

Timing your move: planning around the IVA

Timing can matter. If you’re considering a move while your IVA is active, it can be helpful to think about:

Whether your IVA payments are fully up to date
How long you’ve been in the IVA
When you’ll be ready to share information with your IP and mortgage lender

Moving house is already a time-sensitive process, so aligning the mortgage steps with the IVA permission process can reduce delays.

Chain considerations when you’re moving

Many home movers are part of a chain. If your completion date depends on other transactions, delays can create pressure.

With an IVA in place, it’s especially important to keep the moving process organised:

Stay in contact with your solicitor and keep everyone aware of key dates
Build in time for permission steps and mortgage underwriting
Ensure your mortgage strategy is clear before committing to exchange

Common scenarios for home movers with an IVA

Every situation is different, but the following patterns are often seen:

Upsizing or relocating: you may need a mortgage that reflects a new budget while staying within affordability limits.
Changing from a fixed deal: if your current mortgage deal ends around the time you move, you may need a new arrangement.
Porting not available: you may have to apply to a lender willing to consider an IVA case.
Improved LTV: equity may help, but the IVA still needs to be addressed in the application.

How a specialist broker approach can help

A specialist mortgage broker can help you understand which route is most realistic—porting or applying—and how to prepare for lender questions.

In practice, this often means:

Considering lenders that may be more open to IVA cases
Helping you gather and present the right information
Mapping out a strategy that fits your move timeline

Key takeaways

An IVA can make mortgage approval more complex, but it doesn’t automatically prevent a move.
You’ll typically need permission from your Insolvency Practitioner before taking on new credit.
Moving as a home mover can offer advantages such as repayment history and potential equity.
Your mortgage outcome will usually depend on LTV, affordability, and IVA status/stage.
Porting may be possible in some cases, but applying for a new mortgage is often part of the planning.