Mortgages After an IVA
Understand how your IVA status, credit history and current circumstances may affect a mortgage enquiry.
Discuss a mortgage after an IVAMortgage guidance
A careful mortgage conversation after an IVA
An Individual Voluntary Arrangement can affect a mortgage application, but the letters “IVA” do not provide a complete answer. A lender may consider whether the arrangement is active, completed or terminated, when relevant events occurred, what appears on the credit record and how the applicant's current income, commitments and deposit fit its criteria.
Anderson Reed Financial Services can help you establish the relevant facts, understand how a mortgage lender may assess them and decide whether an enquiry appears realistic now or whether more information, preparation or time may be appropriate. We cannot guarantee that a mortgage will be available.
IVAs are available in England, Wales and Northern Ireland. Scotland uses different formal debt solutions. Tell your Mortgage and Protection Advisor where the arrangement was established. Anderson Reed Financial Services provides mortgage advice, not advice about entering, changing, settling or ending an IVA.
For guidance on other credit circumstances, including missed payments, defaults, CCJs, DMPs, DROs and bankruptcy, visit our bad credit mortgage guide.
Your circumstances
Can you get a mortgage after an IVA?
It may be possible, depending on the IVA status and the complete mortgage application. There is no waiting period, deposit percentage or lender rule shared by the entire market.
Some lenders may consider an application sooner than others, while some may require more time after completion or may not accept the circumstances. Completion alone does not guarantee eligibility. Income, expenditure, existing debts, deposit, property, mortgage purpose and recent financial conduct must also meet the lender's current criteria.
If the IVA is still active, do not assume that taking new borrowing is permitted. Review the terms with the IVA supervisor and obtain appropriate debt advice before making a financial commitment or changing payments.
Understanding the arrangement
What is an IVA?
An IVA is a legally binding arrangement between an individual and their creditors to repay all or part of debts under agreed terms. It is supervised by a licensed insolvency practitioner. The terms, length, payments, assets and obligations depend on the individual proposal and any agreed variations.
This page explains how a mortgage lender may view an IVA; it does not assess whether an IVA is suitable, interpret its legal terms or advise on ending it. Questions about the arrangement itself should be directed to the supervisor or an appropriately qualified debt adviser.
Bankruptcy is a different insolvency route with its own rules and terminology. Read our mortgages after bankruptcy guide if that applies to your circumstances.
Different outcomes
Active, completed, settled and terminated are not the same
Active or ongoing IVA
An active IVA remains in force. The applicant should continue complying with its terms and must not stop payments or take new credit simply to pursue a mortgage. The supervisor can explain any borrowing restriction, consent requirement or effect on the arrangement.
Completed IVA
For a protocol IVA, completion normally occurs when the agreed payments and other obligations have been met and the supervisor issues a completion certificate. That certificate is important evidence for a mortgage enquiry. Completion can release debts that are subject to the arrangement, but it should not be described as clearing every possible debt or liability.
Full-and-final settlement or early completion
An IVA can sometimes complete following an accepted full-and-final variation or payment of the amounts required under its terms. Paying money early does not by itself prove completion. The supervisor's confirmation and completion certificate are the relevant evidence. Do not raise or transfer money for a settlement without advice about the IVA and the source of funds.
Terminated or failed IVA
Termination is not the same as successful completion. Where an arrangement ends because its terms have not been met, creditors may be able to pursue outstanding debts and interest in accordance with the position explained by the supervisor. A certificate of termination does not provide the same evidence as a completion certificate.
Do not cancel or stop paying an IVA to try to improve mortgage options. Speak to the supervisor or a regulated debt adviser about consequences before taking action.
Accurate information
Completion evidence, public records and credit information
Several records may need to be checked separately:
- The IVA approval/start date shows when the arrangement became binding.
- The completion certificate confirms that the supervisor considers the obligations fulfilled.
- A certificate of termination confirms a different outcome and must not be described as completion.
- The Individual Insolvency Register has its own update and removal process. GOV.UK says records are usually removed within three months of an insolvency case ending.
- Credit-reference files follow a separate reporting process and may need correcting if the status or dates are wrong.
- Mortgage-lender criteria are separate again and do not automatically change when a register entry is removed.
A six-year anniversary should not be presented as a guaranteed point at which a credit score becomes excellent or every lender becomes available. Confirm that the recorded information is accurate, keep the completion certificate and assess the current application under lender criteria.
Check completion evidence and credit information
Before a detailed mortgage enquiry, gather the supervisor's completion certificate and check current credit information. Review personal details, addresses, account statuses, defaults and the IVA entry across relevant credit-reference agencies.
If a status or date appears inaccurate, raise it with the organisation that supplied the information and the relevant credit-reference agency. Keep copies of the request and evidence. Correct information should not be challenged simply to try to improve a mortgage application, and no firm can guarantee removal of an accurate IVA record.
A consumer-facing credit score is not a mortgage decision. Lenders use their own information, affordability rules and policies, and different agencies may not hold identical data.
The company we recommend, Check My File, combines data from all three CRAs into one comprehensive credit report. You can access your Check My File credit report using the following link (www.checkmyfile.com), but you do not need to use a particular provider before speaking with us.
A complete assessment
What lenders may consider
A lender may consider:
- Whether the IVA is active, completed or terminated.
- The start, completion or termination dates and supporting certificates.
- Time elapsed since completion and the lender's current policy.
- The debts and credit events shown before, during and after the IVA.
- Current balances, commitments and how accounts have been maintained.
- The circumstances leading to the IVA, where relevant to the assessment.
- Income, regular expenditure and overall mortgage affordability.
- Deposit amount, source of funds and requested loan-to-value.
- The proposed property and whether the mortgage is residential, remortgage or buy-to-let.
- Any previous mortgage decline or credit search.
This list is not a scoring formula. The full application must meet the selected lender's current criteria.
The overall cost
Deposit, rates and affordability
A previous or active IVA may affect which lenders and products are available, which can affect the deposit, rate and fees. There is no universal IVA deposit requirement, and a larger deposit does not override affordability or other lender criteria.
If a mortgage option is available, compare the rate, lender fees, advice fee, early repayment charges and total cost. The actual rate depends on the applicant's complete circumstances and products available at the time.
Do not proceed on the assumption that regular mortgage payments will repair a score or guarantee a lower-rate remortgage later. Future income, affordability, property value, interest rates, credit information and lender criteria can all change.
Our mortgage calculators can help with planning, but they do not assess IVA history or mortgage eligibility.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
Prepare carefully
What to prepare before an enquiry
Depending on the circumstances, useful information may include:
- IVA start date and reference.
- Completion certificate or certificate of termination.
- Details of the IVA supervisor and provider.
- Any accepted variation or full-and-final settlement confirmation.
- Current credit information and the source/date of each report.
- Evidence supporting a correction or dispute.
- Current income and a realistic record of household expenditure.
- Details of outstanding debts, credit limits and monthly commitments.
- Address history and identification evidence.
- Deposit amount and clear evidence of its source.
- A short factual explanation of the circumstances where requested.
- Details of the proposed property and mortgage purpose.
- Information about any previous mortgage application or decline.
Only share sensitive documents through the secure process confirmed by Anderson Reed Financial Services. Do not upload or email an IVA reference, full credit report, National Insurance number or account details through a general contact form. Read our Privacy Statement for more information.
If you are also buying your first property, our first-time buyer mortgage guide explains the general home-buying process.
A separate assessment
Buy-to-let after an IVA
A buy-to-let mortgage after an IVA may be possible in some circumstances, but it follows a separate rental and property assessment. The lender may consider IVA status and dates, deposit or equity, expected rent, personal income, landlord experience, portfolio exposure and property type.
Do not state that a completed IVA automatically permits buy-to-let borrowing or that a future remortgage to a better product will follow. Read our buy-to-let mortgage guide for general information. The FCA does not regulate some forms of buy to let mortgages.
Working with Anderson Reed Financial Services
How Anderson Reed Financial Services can help
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Confirm the IVA status and evidence.
We establish whether it is active, completed or terminated and identify the relevant dates and certificate.
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Review the wider financial position.
We consider credit information, income, expenditure, debts, deposit, property and mortgage purpose together.
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Check relevant lender criteria.
We consider whether an enquiry appears realistic under current policy without promising acceptance.
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Explain a suitable option and its costs.
If proceeding is appropriate, we explain the product, rate, fees, risks and documentation before an application.
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Support a considered application.
We present the relevant information accurately and remain available through valuation, underwriting and the legal process.
Common questions
Frequently asked questions
How long after an IVA can I apply for a mortgage?
There is no market-wide waiting period. The IVA status, completion date, credit record, deposit, affordability, property and lender criteria may all matter. An individual assessment is required and the passing of one date does not guarantee acceptance.
Do I have to wait six years after completing an IVA?
Not every lender applies one six-year waiting rule. Credit-reference reporting and lender mortgage criteria are different. Check that the IVA status and dates are accurate, keep the completion certificate and assess the complete application rather than relying on one anniversary.
Can I get a mortgage while my IVA is active?
An active IVA may restrict new borrowing and will form part of the lender’s assessment. Do not apply or change IVA payments without first checking the terms with the supervisor and taking appropriate debt advice. Mortgage options, if any, depend on those restrictions and lender criteria.
What proves that my IVA has completed?
The IVA supervisor issues a completion certificate when the arrangement has been completed under its terms. A final payment, settlement payment or disappearance from the public register does not replace that evidence.
Is a terminated IVA the same as a completed IVA?
No. A completion certificate records that the relevant obligations were fulfilled. A certificate of termination records that the arrangement ended without successful completion. The remaining debts and consequences should be discussed with the supervisor or a qualified debt adviser.
Will I need a larger deposit after an IVA?
Possibly, but there is no universal percentage. The available loan-to-value can depend on the status and dates, wider credit history, affordability, property and lender criteria. Deposit also needs to be considered alongside fees and a suitable reserve.
Will the mortgage rate be higher after an IVA?
An IVA can affect the lenders and products available, which may affect rates and fees. The actual rate depends on the complete circumstances and products available at the time. Ask for a personalised illustration before deciding.
Will a mortgage improve my credit score?
A mortgage should not be taken for the purpose of repairing a score. It is a long-term loan secured on a property and must be suitable and affordable. Future scores, remortgage options and rates cannot be guaranteed.
Can I get a buy-to-let mortgage after an IVA?
It may be possible depending on the IVA status and dates, deposit or equity, rental assessment, personal circumstances, experience, property and lender criteria. Buy-to-let borrowing follows additional rules and should be assessed separately.
What if I have already been declined?
Find out whether the decline related to the IVA, credit information, affordability, documents, property or another issue before applying elsewhere. Avoid repeated speculative applications; another application should follow a considered review.
Ready to discuss your position after an IVA?
Speak with a Mortgage and Protection Advisor about the IVA status, credit history, affordability, deposit and proposed property.
Mortgage information
The information given in this website does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision. The FCA does not regulate some forms of buy to let mortgages.
It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department, Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
Anderson Reed Financial Services Ltd is entered on the Financial Services Register under firm reference number 947349. Registered in England and Wales under number 13190705. Calls may be recorded for training and monitoring.