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An Individual Voluntary Arrangement (IVA) is a legally binding agreement designed to help people who are struggling with their debts, and who are unable to repay them in full. An IVA involves making regular monthly repayments to an insolvency practitioner (IP), who then distributes the money among your creditors.
An Individual Voluntary Arrangement can typically last for 5-6 years, and at the end of this period, any remaining debt is written off. For homeowners, IVAs are an alternative to bankruptcy that avoids the forced sale of your home. Your mortgage repayments and other secured loans are budgeted for during the process, setting IVA repayments at a level that is affordable for you.
If you are struggling to keep up with your mortgage repayments, and are considering an IVA, then it is important to get advice from a qualified insolvency practitioner. They will be able to assess your financial situation and advise you on the best course of action.
At Echo Finance, we work with many mortgage applicants with adverse credit, including those who have had an IVA. We have a team of specialist mortgage brokers who understand the process and can help you to find the right mortgage for your circumstances.
If you would like to speak to one of our advisers, please call us on 0800 0934 914 or enquire online and we will be happy to help.
Can you get a mortgage with IVA?
There's no doubt, having an active IVA on your credit report will make it much harder to get a mortgage. This is because you will have a poor credit rating and lenders will see you as a high-risk borrower. However, it is not impossible to get a mortgage with an IVA. You may be able to find a specialist lender who is willing to lend to you, but you are likely to pay a higher rate of interest, contribute a larger deposit and borrow less.
You will need to get permission from your Insolvency Practitioner (IP) before you can take out a mortgage. This is because they have the ultimate say in your personal finances during the IVA process.
Can you get a mortgage after an IVA?
Yes, it is possible to get a mortgage after an IVA has been completed. Depending on how long ago your IVA finished, your personal circumstances, and your credit history, you may be able to find a mainstream lender who is willing to lend to you.
How long after an IVA can I get a mortgage?
Mortgage lenders are often reluctant to lend to people who have been through an IVA, as they view them as a higher risk. However, there are some specialist mortgage lenders who will consider your mortgage application, usually, 12+ months after your IVA has been completed.
Your IVA will remain on your credit file for 6 years, so it is important to rebuild your credit rating during this time. You can do this by making all of your loan and credit card repayments on time, and by not applying for any new credit.
If you are considering taking out a mortgage after an IVA, then it is important to get advice from an experienced mortgage broker. They will be able to assess your financial situation and advise you on the right lender and mortgage deal for your needs.
Will I need a bad credit mortgage?
If you're looking for a mortgage within 6 years of an IVA being completed, you may need to apply for a bad credit mortgage. These are specialist mortgages for people with a poor credit history, and they usually come with higher interest rates and fees.
Bad credit mortgages are not available from high street lenders, so you will need to approach a specialist mortgage lender. It is important to compare mortgage deals before applying, as the rates and fees can vary considerably. You should also make sure that you can afford the monthly repayments, as defaulting on your mortgage can result in your home being repossessed.
You should seek expert mortgage advice from a specialist mortgage broker before applying. Not only will they be able to assess your financial situation and advise you on the best lender and deal for your needs, but they'll help to boost your chances of approval.
Improve your chances of approval
There are a few things you can do to improve your chances of being approved for a mortgage:
- Save up for a larger deposit. The larger your deposit, the lower the risk for the lender and the more likely you are to be approved.
- Improve your credit score. Lenders will assess your credit score when considering your mortgage application. You can improve your credit score by making all of your loan and credit card repayments on time, and by not applying for any new credit.
- Seek expert mortgage advice. An experienced broker will be able to assess your financial situation and advise you on the best lender and mortgage deal for your needs. They will also help to boost your chances of approval.
Get expert IVA mortgage advice
If you are considering taking out an IVA mortgage, then it is important to get expert advice. IVA mortgage lenders are few and far between, so it is important to compare deals and find the right one for your needs.
At Echo Finance, we've helped many people with an IVA or bad credit history to get approved for a mortgage. We worked with 90+ lenders, including specialist lenders who consider IVA mortgage applications.
We understand the challenges that you face when trying to get a mortgage with an IVA in your history, and we can help you to find the right lender and deal with your needs. We'll also give you expert advice on how to improve your chances of approval.
To speak to one of our expert mortgage advisers, call us on 0800 093 4914 or fill in our online enquiry form and we'll call you back at a time that's convenient for you.
Find your local adviser
Frequently Asked Questions
Below you will find the answers to the questions we hear most often from Echo Finance customers:
A mortgage broker, or a mortgage advisor, is an intermediary who acts as a conduit between an aspiring borrower and a lender. It is their job to provide the mortgage applicant with impartial advice, help them choose the right product and arrange the deal with the lender.
Brokers provide services including advice on which type of mortgage to choose, providing access to exclusive rates through their lender contacts, and application support. Some can offer advice on all areas of the mortgage market, while others specialise in niche fields such as buy-to-let, bad credit, commercial finance, first-time buyers or self-employed borrowers.
People choose to apply for their mortgage through a broker because it can boost their chances of finding the right deal, while saving time and money in the long run.
- Residential mortgages: Everything from fixed-rate to tracker mortgages for first-time buyers, homemovers and remortgage borrowers
- Specialist mortgages: For borrowers who fall outside of standard lending criteria, including people with bad credit, self-employed professionals and more
- Later-life lending: Including advice on equity release, mortgages for pensioners and retirement interest only (RIO) mortgages
- Bridging & Commercial: We have specialist advisors on hand for commercial mortgages, bridging loans, development finance and more
- Insurance & Protection: Including life, home and critical illness cover for families and individuals, as well as landlord and business protection insurance
Echo Finance is regulated by the Financial Conduct Authority and is reviewed annually by an independent compliance company. All of our brokers and advisers hold industry-standard qualifications, such as CeMAP, CeRER and DipMap, where required.
We are committed to providing advice through the channels that best suit your needs. Our brokers can provide advice via phone, email, video and web chat from anywhere in the UK, but we also aim to offer face-to-face appointments for those who request them.
