Updated 20th November 2021.
IVA Mortgage Advisors.
Our Mortgage Experts Online accredited advisors are specialists in IVA mortgages. Importantly, our expert’s knowledge will help you to find the right IVA mortgage on the market to meet your specific requirements.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there.
As a result, this may feel completely overwhelming to you and you may have no idea where to start.
We can offer you guidance and help you navigate the complex world of IVA mortgages.
In addition, the brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s about IVA mortgages.
IVA Mortgage Topics.
- Can I get an IVA Mortgage?
- What is an IVA?
- Can I get a mortgage after an IVA?
- Has anyone got a mortgage after an IVA
- How does an IVA affect my credit report?
- Will I lose my home in an IVA?
- How to get a mortgage after an IVA
- IVA Mortgage Advisor
Can I get an IVA mortgage?
Getting a mortgage with an IVA is difficult, but not impossible. For the most part, IVA mortgages will come down to your circumstances at the time.
As a result, the more historic the IVA the better the chance of obtaining an IVA mortgage.
The mortgage market has a wide variety of bad credit mortgage lenders who offer a variety of different options to get a IVA mortgage.
Firstly, mortgage rates will be higher than standard rate, this is to reflect the perceived increased risk.
Secondly, you will need a bigger deposit if you’re purchasing a property.
With the IVA mortgage market continuously changing, speak to an IVA mortgages expert for the most up to date information.
If you’re looking to remortgage whilst in an IVA this is also possible. The more equity you have in your property the better the chances of success.
The mortgage lenders appetite to help borrowers in situations such as this has increased over the recent years, this is because of increased bad credit mortgage providers.
Similarly, there will be other criteria to meet around an IVA remortgage, we will explain all the options in this article.
What is an IVA?
An IVA stands for Individual Voluntary Arrangement.
This is a way to deal with debt you are struggling to repay. It is an agreement between you and your creditors that sets out when and how you’ll repay them.
For example, you might promise to give them some of your salary each month, or to pay them a lump sum.
In return, creditors may agree to wipe out some of your debt, meaning you will not need to pay the full amount owed.
Only some people can qualify for an IVA. At least 75% of your debts need to be included in the Agreement, and the creditors must agree to it.
Some debts cannot be included, such as student loans, fines and child support.
To set up an individual voluntary arrangement, you will need to pay a licensed insolvency practitioner (usually a qualified lawyer or accountant).
Their fees can be around £4000 and upwards – but some practitioners will include this in the Agreement.
There are some debt charities such as StepChange, more information can be found here.
Can I get a mortgage on IVA?
Getting a mortgage during an IVA can be extremely difficult.
The nature of the IVA agreement means you’re legally bound to pay as much money as you can realistically afford towards repaying your debt.
There are some lenders who will lend to you whilst on IVA if you are looking to clear the IVA from funds for example with a remortgage.
Has anyone got a mortgage after an IVA?
Getting a mortgage after an IVA has finished is difficult , but is certainly possible. An IVA will remain on your file for 6 years after the IVA has completed.
You will need to provide extra evidence for any mortgage application and use a specialist lender. However, the interest rates will be higher than a standard high street mortgage.
If your IVA is still active, then its highly likely you will not get a mortgage at all. Furthermore, you will need your IVA to be satisfied.
How long the IVA has been satisfied will determine which lenders will offer an IVA mortgages.
There is a specialist lender who will accept a mortgage application once the IVA is completed. Each IVA mortgage application will be judged on the circumstances at the time.
Above all, IVA mortgages require the assistance of an IVA mortgage specialist to ensure the best chance of success.
How does an IVA affect my credit report?
If you get an individual voluntary arrangement, this will be recorded on your credit report.
As a result, your credit score will go down. Coupled with a lower credit score meaning you may struggle to borrow money and especially when it comes to obtaining an IVA mortgage.
In conclusion when you apply for credit – such as a mortgage – the IVA mortgages lender will use your credit information to help them decide if you are likely to pay them back.
An IVA shows you have had difficulty repaying debt in the past, so they will see you as a high-risk customer. As a result, this will affect your application and the rate offered.
An IVA will show on your credit report for 6 years from the date of registration. However, lenders will often ask if you have EVER entered into an IVA and you must always disclose it.
Will I lose my home in an IVA?
Under an IVA it’s highly unlikely you’ll have to sell your home.
However, depending on the amount of equity in your home, you may be asked to re-mortgage six months before the end of your IVA to release equity.
This will then be paid into your IVA. In reality it will be difficult to remortgage whilst in an IVA and if you can, the increase in interest rate will increase you monthly payment, therefore making it an unattractive proposition.
How to get a mortgage after an IVA.
With any type of bad credit mortgage, it is never a straightforward process. Because specialist lenders all work differently and use a variety of methods to assess IVA mortgage applications.
For instance, making sure your credit report is reflective of your situation. Is the IVA recorded as satisfied on your report?
Ensuring all balances are reflected as settled once the IVA is satisfied. However, having copy of your discharge certificate to send to the mortgage lender will also be important.
Having the help of an IVA expert broker will increase your chances of success. For instance, the brokers we work with have experience in placing IVA mortgages and know the criteria and processes involved.
Consequently, the higher your deposit levels, the higher your chances of being accepted.
There are many reasons to use an expert IVA mortgages broker. Above all, it will give you the best chance of getting the best IVA mortgage possible.
Speak to an IVA mortgage advisor.
There are many lenders available ranging from high street banks and building societies to specialist lenders.
We tend to find that most people go to their own bank, only to either find out they do not do IVA mortgages, get declined, or cannot borrow what they need due to lender affordability.
Remember, just because one lender has declined you, don’t give up!
Our IVA mortgage experts will look at each case before deciding which lender is right for you and your individual circumstances.
All the mortgage brokers we work with are whole of market and offer independent, unbiased advice.
As such, they will have access to all the specialist lenders to really enhance your chances of you obtaining the IVA mortgage you need.
Therefore, the expert advisors we work with have experience in dealing with all aspects of IVA mortgages, and crucially use the whole of the market to access the best deals available.