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Is an IVA worth it? Discover the pros and cons of an Individual Voluntary Arrangement, how much debt you need, and whether it’s the right solution for you.
September 4, 2025
IVA and Mortgage
When we propose IVA to a client their first concern would be ‘Can I get a Mortgage with an IVA?’. 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.
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How does an IVA 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.
How Long Does IVA Stay on Your Credit File?
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.
How Do You Check If Your IVA Is Still on Your Credit File?
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.
Can You Get a Mortgage After an IVA?
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.
How to Build Your Credit Score After an IVA?
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!
mortgage after IVA
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!
We have supported 11,300+ individuals on their journey towards financial well-being.
Hear From Sarah
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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frequently asked questions About IVA
An individual voluntary arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. It’s designed to help you manage your debts when they are unaffordable, by entering into an agreement with your creditors to repay all or part of your debt over the space of 5-6 years. You gain legal protection, providing you keep up your payments, and your creditors will stop chasing the debt and applying further fees and charges.
IVA providers charge fees (which are included in your monthly payments), failing can result in bankruptcy, it affects your credit file for 6 years (after which, it will be clear), creditors may not agree, you’ll appear on the Insolvency register, a public register of insolvency cases, a percentage of additional income may need to be paid in, you may be asked to release home equity if an owner.
Due to IVAs lasting upto six years, recency plays a part here, many IVAs registered in 2018 or later are still ongoing so establishing a recent trend is difficult. The 42% peaks of 2007 are long passed, with affordability being a key factor. Data as at 31st December 2022 shows that 28% of IVAs registered in 2018, and 20% in 2019 have been terminated. IVAs that fail in the first year are rare and that’s why data from 2022 and 2023 is not yet available.
You are under no obligation to divulge your IVA status to partners, family or friends, however, your IVA with be on the Insolvency Register which is a public ledger that anyone can view. Your IVA may also need to be divulged when applying for financial products or certain jobs.
One of the main advantages of an IVA over a bankruptcy, is that your house is protected, providing your mortgage and IVA payments are maintained (mortgages cannot be included within your IVA).
There’s risk associated with all legally binding agreements, however, in the case of IVAs, the benefits generally outweigh the risks. If your IVA fails, your creditors may petition for your bankruptcy, if you work in a regulated industry, such as security or finance, an IVA may restrict your job search activity.
Your IP has a duty to your creditors to investigate any potential other funds that can be used to reduce what you owe, that can include HMRC.
Generally speaking, a phone contract itself wouldn’t trigger the £500 credit limit, however, if your handset is part of the finance and would take you above the credit limit, it’s always best to speak to your IP before signing the contract.
Learn more about managing your debt:
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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
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