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Can I Get a Mortgage After an IVA?

Yes, you can get a mortgage after completing an Individual Voluntary Arrangement (IVA). While an IVA will initially impact your credit score and mortgage options, it doesn’t permanently prevent you from getting a mortgage. Many people successfully obtain mortgages after their IVA has finished.

When Can I Apply for a Mortgage After an IVA?

Immediately After IVA Completion

  • Specialist lenders may consider applications immediately after your IVA completion certificate
  • Higher interest rates and larger deposits (typically 25-40%) will be required
  • Limited product choice but homeownership is possible

12 Months After IVA Completion

  • More lenders become available, including some mainstream providers
  • Better interest rates and reduced deposit requirements (20-25%)
  • Improved credit score from 12 months of positive payment history

3+ Years After IVA Completion

  • Near-normal mortgage market access with most mainstream lenders
  • Competitive interest rates close to standard market rates
  • Standard deposit requirements (5-10% with some lenders)

Which Lenders Accept Post-IVA Mortgage Applications?

Specialist Bad Credit Mortgage Lenders

  • Pepper Money - Considers applications 12 months post-IVA
  • Bluestone Mortgages - Immediate post-IVA applications considered
  • Norton Finance - Flexible criteria for IVA cases
  • Hope Capital - Buy-to-let and residential options

Building Societies

  • Mansfield Building Society - 12 months post-IVA completion
  • Newbury Building Society - Case-by-case assessment
  • Furness Building Society - Considers post-IVA applications

Mainstream Lenders (3+ Years Post-IVA)

  • Santander - 3 years after IVA removal from credit file
  • Halifax - Individual assessment after 3 years
  • NatWest - May consider after sufficient credit rebuilding

How to Improve Your Post-IVA Mortgage Chances

1. Rebuild Your Credit Score

  • Register to vote at your current address
  • Use credit rebuilding cards responsibly (30% utilization maximum)
  • Pay all bills on time including utilities, phone, and council tax
  • Check credit reports monthly for errors and dispute any mistakes

2. Save a Larger Deposit

  • 25-40% deposit significantly improves approval chances initially
  • Reduces lender risk and unlocks better interest rates
  • Shows financial discipline to mortgage underwriters

3. Demonstrate Stable Income

  • 12+ months employment history with current employer
  • Consistent income without gaps or reductions
  • Avoid job changes in the 6 months before applying

4. Use a Mortgage Broker

  • Specialist brokers have access to more post-IVA lenders
  • Expert knowledge of which products suit your situation
  • Higher success rates than direct applications

IVA Mortgage Application Process

Documents You’ll Need

  • IVA completion certificate from your Insolvency Practitioner
  • 3 months payslips and bank statements
  • P60 or tax year overview for income verification
  • Credit report showing current score and history
  • Deposit source evidence (savings statements, gift letters)

Typical Timeline

  1. Initial broker consultation - 1-2 weeks to assess options
  2. Formal application - 2-4 weeks for lender decision
  3. Property valuation - 1-2 weeks after offer acceptance
  4. Legal process - 6-12 weeks to completion

Mortgage Rates After an IVA

Immediately Post-IVA

  • Interest rates: 4-8% typically
  • Product fees: £1,500-£3,000
  • Arrangement fees: Often higher than standard mortgages

12-24 Months Post-IVA

  • Interest rates: 3-6% depending on deposit size
  • More competitive products become available
  • Lower arrangement fees with some lenders

3+ Years Post-IVA

  • Near-standard rates: 2-4% with good credit rebuilding
  • Access to best buy tables with sufficient deposit
  • Standard product fees and terms

Common Post-IVA Mortgage Mistakes to Avoid

1. Applying Too Soon

  • Wait for IVA completion certificate before making applications
  • Multiple rejections can damage your credit score further
  • Timing applications strategically improves success rates

2. Not Using a Specialist Broker

  • Direct applications often result in automatic rejections
  • High street banks may not understand IVA circumstances
  • Specialist knowledge is crucial for success

3. Insufficient Deposit

  • Small deposits severely limit lender options
  • 5-10% deposits unlikely to be accepted initially
  • Saving longer opens more doors and better rates

Remortgaging After an IVA

If you owned a property during your IVA and kept it, remortgaging follows similar rules:

  • New lender applications treated as post-IVA mortgages
  • Current lender may offer product transfers more readily
  • Equity release during IVA may have reduced your loan-to-value ratio

Buy-to-Let Mortgages After an IVA

Yes, buy-to-let mortgages are possible after an IVA:

  • Specialist BTL lenders consider post-IVA applications
  • Higher deposits required (typically 40-50%)
  • Rental income calculations may be more conservative
  • Portfolio landlords face additional scrutiny

FAQ: Mortgages After IVA

Q: How long does an IVA stay on my credit file? A: An IVA remains on your credit file for 6 years from the start date, or 12 months after completion of a typical 5-year IVA.

Q: Can I get a mortgage while still in an IVA? A: It’s extremely difficult. Most lenders require IVA completion, though a few specialists may consider applications in final year with IP consent.

Q: Will my mortgage rate be higher after an IVA? A: Initially yes, but rates improve as your credit rebuilds. After 3+ years, near-standard rates are achievable.

Q: Do I need to declare my IVA to mortgage lenders? A: Yes, you must declare your IVA history when asked. Lenders will see it on credit searches anyway.

Q: Can I use Help to Buy after an IVA? A: Help to Buy schemes typically require excellent credit, making them unlikely options immediately post-IVA.

Ready to Explore Your Mortgage Options?

Don’t let your IVA stop you from achieving homeownership. With the right approach and specialist help, a mortgage after an IVA is definitely achievable.

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