IVA Mortgages: Can You Get a Mortgage With an IVA?

An IVA makes getting a mortgage harder, but it doesn't rule it out. If you used an IVA to manage debt and you're now in a stronger financial position, buying a property is realistic, even though the arrangement will still show on your credit file for a while yet.

This guide covers what counts, how lenders view an IVA at each stage, and what you'll need to prepare. If you're also dealing with a CCJ or bankruptcy alongside an IVA, our wider adverse credit mortgages hub covers those situations too.

What Is an IVA?

An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between you and your creditors. It combines your unsecured debts into one manageable monthly payment, and whatever balance remains at the end of the term is written off. It can cover credit cards, overdrafts, personal loans, unpaid utility bills and Council Tax, and amounts owed to HMRC.

A licensed Insolvency Practitioner sets up and manages the arrangement, including negotiating with your creditors and collecting your payments. An IVA usually lasts five years, or 60 monthly payments, though missed payments can extend it to six years. It stays on your credit file for six years from the date it started, regardless of when it actually completes.

Can You Get a Mortgage During an IVA?

It's highly unlikely. Lenders are generally reluctant to approve new borrowing while an IVA is active, and the IVA's own terms typically restrict how much additional credit you're allowed to take on in the first place. In practice, most people need to wait until the arrangement ends before a mortgage becomes a realistic option.

Can You Get a Mortgage After an IVA?

Yes, this is possible, though it can be difficult in the early stages. You'll likely be limited to specialist lenders who assess cases individually rather than relying purely on automated scoring, and you should expect higher interest rates than someone with a clean credit history.

These lenders typically look at when the IVA was set up, how long ago it was fully repaid and formally discharged, and the circumstances that led to it in the first place. Your chances generally improve the further you get from your completion date. If you're specifically around the three-year mark since discharge, our dedicated guide on getting a mortgage 3 years after an IVA covers lender options and typical pricing bands at that stage in more detail.

Do You Have to Declare an IVA on Your Mortgage Application?

Yes, always. You must disclose any IVA on a mortgage application, even once it's no longer visible on your credit report after six years. Being upfront saves time and cost in the long run. If a lender discovers an undisclosed IVA later in the process, your application can be declined outright, and any fees you've already paid may not be refundable.

Will You Need a Larger Deposit?

A larger deposit is likely, since lenders generally view a past IVA as higher risk and a bigger deposit reduces both the loan amount and their exposure. There's no fixed percentage that applies across the board. The exact requirement depends on each lender's own criteria, how long ago your IVA completed, and your wider financial picture. Our mortgage deposit guide can help you plan, and our overview of mortgage interest rates explains how your rate is likely to be affected.

Does an IVA Affect Your Current Mortgage or Ability to Remortgage?

If you already had a mortgage when your IVA started, it's usually unaffected, and your repayments continue as normal throughout the arrangement. New mortgages and remortgages are more restricted.

If you own a property when an IVA begins, you'll likely face restrictions on it for the duration of the arrangement, and remortgaging or selling will usually need approval from your Insolvency Practitioner. You may also be asked to release equity from the property to help settle your debts, so it's worth reading your IVA terms carefully, or discussing releasing equity with an adviser before taking any steps. Our remortgage guide covers the wider process once you're ready to look at it.

How to Improve Your Credit Score After an IVA

A better score after your IVA opens up more mortgage products and better rates. A few things help:

• Register on the electoral roll, if you haven't already.
• Check your credit file for errors and watch for any signs of fraud.
• Pay everything on time, every time, from here on.
• Keep your credit utilisation low on any cards or facilities you do have.
• Avoid moving home too often, since a stable address history helps lenders assess you.

You can check your credit file for free through our own free credit check rather than paying for a third-party service, and see our guide on what credit score you need to buy a house for how that fits into the wider picture.

How a Mortgage Broker Can Help

A broker experienced with adverse credit cases can identify the lenders most likely to consider your situation and support you through the application. Applying to the wrong lender wastes time and can leave a mark on your file that makes the next attempt harder, which is exactly what happened to applicants we've seen who've been declined before applying through the right channel. Our guide on specialist mortgages explains this kind of lending in more detail, and our broader guide on how to get a mortgage is worth a read if it's been a while since your last application.

Whether you're a first-time buyer, looking at buy-to-let, applying as part of a joint mortgage, or considering Shared Ownership, our advisers work with lenders across the market who take a fair, case-by-case view of past IVAs. Call us on 0191 580 9890, message us on WhatsApp, or use our mortgage calculators to see what you could borrow.

The above blog has information contained within which was correct at the time of publication but is subject to change.