When we propose IVA to a client their first concern would be ‘If I have an IVA can I get a Mortgage?’. IVA and mortgages are closely connected and a common area of concern. While having an IVA does affect your credit score so does having a problem with debt. Unpayable debt will bring your credit score down and it will push the dream of getting a house further away than ever.
The good news is that you can get a mortgage after your IVA ends. Let’s explore how IVAs and mortgages work.
An IVA or Individual Voluntary Arrangement is a contract with creditors, which allows you to repay the debts in regular installments.
An IVA is set up and managed by a qualified Insolvency Practitioner (IP). They will work out the repayment plan which will calculate how much is paid each month, and for how long typically over 5 to 6 years, and act as the intermediary between an individual and their creditors, to check they agree with the set monthly amounts.
Once completed, your IVA is removed from the register and any debt left over is written off. You will then owe nothing to the creditors, and you can go forward with a fresh start.
Generally, your credit file holds six years’ worth of information.
Typically IVAs last for five to six years, So some people after completing their IVA can be on your record for about one more year.
A mortgage broker will be able to view this information and for this reason, it is a good idea to wait until the IVA has dropped off your credit file before applying for a mortgage.
It’s simple! You can request a copy of your credit file from one of the UK’s credit reference agencies like Experian, Equifax, or Callcredit (now part of TransUnion). This gives you a clear picture of what lenders will see. A one-off request usually costs around £2.
The short answer is Yes,
Having an IVA doesn’t mean you’ll never get a mortgage. With a bit of planning and patience, you can get a Mortgage. Once your IVA drops off your credit file, you’ll be in a much better position to move forward.
If your IVA is completed in 5 years it is best to wait for one more year, but in the meantime, you start making efforts in building your credit score.
Get Proof Your IVA is Complete
Ask your Insolvency Practitioner (IP) for a completion certificate. This shows your IVA is finished and can help you rebuild your credit score.
Check Your Details
Look at your credit report often to ensure all your details are correct. Mistakes can harm your score.
Also, register on the electoral roll this shows you have a stable address, which helps improve your credit score.
Pay Bills on Time
Paying your bills on time shows you’re reliable and helps build your credit score. Set up direct debits to avoid missing payments. Switching to cheaper providers can also make it easier to stay on top of payments.
Making small changes like these will steadily improve your credit score!
Take Your Time
Getting a mortgage is a big decision, so it’s important to explore your options carefully.
Consider a Mortgage Broker
If you’re worried about your credit history, a professional mortgage broker can offer tailored advice for your situation. They may have access to better deals than high-street banks.
Be Cautious with Specialist Lenders
Some lenders target people with poor credit, offering so-called “bad credit mortgages” with promises like “guaranteed acceptance.” These deals often come with very high fees and interest rates.
Think Long-Term
It might feel urgent to get a mortgage after finishing your IVA, but taking time to rebuild your credit score and save for a deposit can lead to better offers in the future.
Patience now can mean better mortgage options later!
After ignoring my growing debts for over two years, I finally asked for help. I usually get so overwhelmed when dealing with other companies, but my advisor was incredible—understanding, helpful, and got everything sorted with just one phone call. Within a week, I was on an IVA plan, and for the first time in years, I’ve had no bailiff threats. Thank you for helping me through this debt crisis. I can finally breathe again!
Name changed for privacy**
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Advice Centre Group Ltd registered in England and Wales (14322979). Registered office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.
Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
Insolvency Practitioner Directory- Insolvency Practitioner Details (bis.gov.uk)
What you need to know about Individual Voluntary Arrangements (Insolvency Service)
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