Can I Get a Mortgage with an IVA?

If you’ve had an Individual Voluntary Arrangement (IVA), you might be asking: can I get a mortgage with an IVA? While an IVA can feel like a significant barrier, it is still possible to get a mortgage after an IVA. Understanding how lenders assess mortgage applications with an IVA on your credit file is essential for improving your chances.

 

What Is an IVA and How Does It Affect Mortgage Applications?

An IVA is a formal debt solution that allows you to repay creditors over a fixed period, usually five or six years. It shows lenders you’ve had serious financial difficulties and can impact your ability to get a mortgage.

• Most mainstream mortgage lenders will refuse applications until the IVA is fully completed and removed from your credit report - typically six years from the start date.

• Even after the IVA is cleared, many lenders will view it as a warning sign, making approval more difficult.

 

Mortgages After an IVA: Specialist Lenders and What to Expect

If you are still in an IVA or have recently completed one, you may need to seek specialist mortgage lenders who cater to those with adverse credit histories.

• Specialist lenders often require a larger deposit, usually 25% or more of the property’s value.

• Interest rates tend to be higher to compensate for the increased lending risk.

• These lenders take a more detailed look at your overall financial circumstances and improvement since your IVA.

 

Why the Timing and Cause of Your IVA Matter to Lenders

Lenders consider factors such as:

• How recently the IVA was discharged - the longer the time since completion, the better your mortgage prospects.

• Your financial behaviour since the IVA, including timely bill payments and debt management.

• The cause of the IVA, such as redundancy or unexpected events, which can be easier to explain than habitual overspending.

 

How Klink Can Help You Get Mortgage Ready After an IVA

Klink offers powerful tools to help you rebuild your finances and improve your mortgage eligibility after an IVA:

• Mortgage Readiness Check: Analyses your current spending and saving patterns to show how lenders might view your finances.

• Spending Insights: Highlights areas where you might be overspending or missing payments.

• Home Goal: Helps you set and track realistic savings targets for your deposit.

Using Klink enables you to prove to lenders that you’ve taken control of your finances and are ready to commit to a mortgage responsibly.

 

Tips for Getting a Mortgage with an IVA

1. Complete your IVA fully and wait for it to be removed from your credit report.
2. Build a positive credit history with on-time payments on all debts.
3. Save for a larger deposit to improve your mortgage approval chances.
4. Use budgeting and financial tools like Klink to strengthen your money management.
5. Consult a specialist mortgage broker experienced in adverse credit or IVA mortgages.

 

Getting a mortgage with an IVA requires time, patience, and financial discipline.

Download Klink today to start improving your mortgage readiness and take control of your journey to homeownership, even with an IVA in your past.