If you’re considering an Individual Voluntary Arrangement (IVA), you may be worried about what it could mean for your plans to buy a home. You might also already have a mortgage and be wondering whether an IVA could affect your ability to remortgage or move house.
The answer is yes, you may still be able to get a mortgage or remortgage with an IVA, although there may be some restrictions.
Getting a mortgage has now evolved to offer more variety of products that are more inclusive of people with varied credit ratings. Alongside high street institutions, a mortgage broker will source specialist lenders who look at the whole financial picture of a potential borrower, not just their credit report.
This means that even if you have entered an IVA, you may still be able to get a mortgage.
In this article, we’ll explain how an IVA affects getting a mortgage and whether you could still be eligible for one.
What is an IVA?
An individual voluntary arrangement (IVA) is a debt solution that can help you to repay your debts over a period of time, usually 5 years.
It’s a formal agreement between you and your creditors, which means that they’ll agree to freeze interest and charges on your debts and accept lower payments each month.
Once you’ve completed your IVA, any remaining debt will be written off.
An IVA is a good option if you’re struggling to repay your debts in full and you want to keep your home.
Can I get a mortgage with an IVA?
Yes, it may be possible to get a mortgage with an IVA, but having an active IVA can make your mortgage options more limited. Like with all debt solutions, your options may be more limited, and the interest rates could be higher than if you had a clean credit history. Lenders will look closely at your financial circumstances before deciding whether to lend, and some may not accept applications from people who are currently in an IVA.
This doesn’t necessarily mean you can’t get a mortgage. Some lenders may consider applicants with an IVA, but their eligibility criteria and the terms they offer can vary considerably. You may also find that the range of mortgages available to you is different from what would be available to someone with a stronger credit history.
If you’re currently in an IVA and want to borrow for a property, it’s important to speak to your insolvency practitioner before making any application. Taking on new borrowing during an IVA can be subject to restrictions, so you shouldn’t assume you can apply for a mortgage without first checking what your arrangement allows.
The situation can be different once you’ve completed your IVA. Although completing an IVA is an important step towards resolving your debts, it doesn’t mean your credit history will go straight back to normal. Lenders may still consider your previous IVA when assessing a mortgage application.
If you’re considering an IVA and you’re a homeowner, you may wish to seek professional advice whilst assessing your options. An IVA mortgage is not suitable for everyone and should only be considered if you are certain it is the right solution for your circumstances.
Can you get a mortgage while you’re in an IVA?
Getting a mortgage while you’re in an IVA can be harder, and you shouldn’t apply for new borrowing without first discussing it with your insolvency practitioner.
Under the 2025 IVA Protocol, you must get your supervisor’s written approval before obtaining credit of more than £500, apart from certain exceptions.
Your insolvency practitioner will need to consider your financial circumstances and whether taking on the proposed mortgage is compatible with the terms of your IVA.
Even if you have permission to get a mortgage, it doesn’t mean a lender will approve your application. Mortgage lenders will carry out their own affordability and credit assessments, and their criteria for applicants with an active IVA can vary.
How does an IVA affect getting a mortgage?
Although an IVA has great benefits in providing debt relief, there are some implications for homeowners and would-be homeowners alike.
There isn’t one set of mortgage terms that applies to everyone with an IVA. Lenders have their own criteria, so the impact can vary depending on your circumstances and the lender you’re applying to.
Your credit history
An IVA can impact your credit history. It will be recorded on your file and can make it harder to access mainstream credit while the IVA is active.
Other information on your credit file, such as missed payments, defaults and existing borrowing, can also affect how a lender views your application.
Even though an IVA won’t automatically stop you from getting a mortgage, you might have fewer lenders to choose from compared to those with a better credit history.
Your income and affordability
Mortgage lenders will need to assess whether you can afford the proposed mortgage payments as well as your other financial commitments.
If you’re currently in an IVA, your existing IVA payments will form part of your financial circumstances. A lender will consider your income and expenditure when deciding whether the mortgage is affordable.
Your deposit
Your mortgage deposit can also form part of a lender’s assessment.
Having a larger deposit may improve the range of mortgage options available to some applicants, but there isn’t a rule that says everyone with an IVA needs to provide a particular size of deposit.
The deposit required will depend on the lender, the property, and your wider financial circumstances.
The lender’s criteria
Different mortgage lenders have different criteria for applicants with adverse credit or a history of insolvency.
Some lenders may be willing to consider an application that a mainstream lender would not, while others may not accept an applicant with an active or recent IVA at all.
So even if it might seem impossible to get a mortgage, you shouldn’t necessarily give up. One lender may not accept your application with an IVA, but another might. A regulated mortgage broker can explain which lenders may be appropriate for your circumstances and what their criteria are.
Do I have to declare an IVA with a mortgage application?
When applying for a mortgage, you will be required to disclose any debts, including your individual voluntary arrangement.
This is because lenders need to know your financial commitments as part of the eligibility process for IVA mortgages. It’s important to be honest when disclosing your debts, as any false information could lead to your mortgage application being declined.
If you have completed your IVA and it’s no longer active, you’re not legally obliged to disclose it on your mortgage application.
However, it’s always best to be 100% transparent with lenders when applying for a mortgage. This is because any information you withhold could lead to your mortgage application being declined.
It’s also worth noting that some lenders may still request information about your completed IVA as part of their regular credit checks.
If you’re unsure what information you need to provide, ask your mortgage adviser or broker before submitting your application. Giving inaccurate or incomplete information could cause problems with your application later.
How long after an IVA can you get a mortgage?
There isn’t a fixed waiting period that applies to everyone who has completed an IVA.
Some lenders may consider an application relatively soon after an IVA has ended, while others may have stricter criteria around how long ago the IVA was completed or when it began.
An IVA can remain on your credit file for six years from the date it begins, so it’s important to understand that completing the arrangement and the IVA disappearing from your credit file are not necessarily the same thing.
Instead of thinking about it in terms of a set number of months, consider your overall financial position and speak to a regulated mortgage adviser who can explain which lenders may consider your circumstances.
Can paying off an IVA early increase my mortgage chances?
If you’re looking to improve your chances of being accepted for a mortgage, you may feel paying off your individual voluntary arrangement early could be one way of doing this.
However, an early IVA settlement does not guarantee you will be accepted for a mortgage, and each case is decided on its own merits.
Your credit file will still show you completed an IVA even if it was settled early. This may still be viewed negatively by some lenders, although it will show you have made an effort to clear your debts.
Can I get a joint mortgage with an IVA?
It is possible to obtain a joint mortgage whilst one applicant has an active IVA. However, it can limit your mortgage options.
If you’re looking to get a mortgage with someone else, it’s important to be aware that both applicants’ financial history and credit score will be taken into account.
This means if one applicant has an IVA, this could impact the other applicant’s chances of being accepted for the mortgage. It’s therefore important to consider both applicants’ financial history before applying for a mortgage.
What happens if one person on a joint mortgage has an IVA?
The lender will consider the financial circumstances of both applicants, including their income, existing commitments and credit history.
The person without an IVA doesn’t automatically become subject to the other person’s IVA. However, because you’re applying for the mortgage together, the lender will consider both applicants when deciding whether the mortgage is affordable and whether the application meets its lending criteria.
Can my partner get a mortgage without me if I have an IVA?
In some circumstances, a partner may be able to apply for a mortgage in their sole name rather than making a joint application.
However, this isn’t automatically a better option. The lender will still assess the applicant’s income and affordability, and there may also be implications around property ownership and who is responsible for the mortgage.
If you’re considering this route, it’s important to get mortgage advice based on your specific circumstances rather than assuming a sole application will be accepted.
Does my partner’s credit score get affected by my IVA?
Having a joint mortgage application doesn’t mean your partner automatically has an IVA or that your IVA is added to their individual credit history.
However, financial associations between people can be relevant to lenders when assessing joint borrowing. The lender will consider both applicants when deciding whether to approve the mortgage.
If you’re considering a joint mortgage while one person has an IVA, speak to a regulated mortgage adviser before making an application.
Can you remortgage with an IVA?
Remortgaging while you’re in an IVA can be more challenging because you’re already subject to a formal debt arrangement and taking on new borrowing may require approval.
If you’re thinking about remortgaging, speak to your insolvency practitioner before contacting mortgage lenders. They can explain whether the proposed borrowing is compatible with your IVA and what approvals may be needed.
A mortgage lender will then carry out its own assessment of your application. Your income, affordability, credit history, existing mortgage, and the terms of your IVA can all affect the options available to you.
What if you already have a mortgage when you enter an IVA?
Having a mortgage doesn’t mean you can’t apply for an IVA. However, owning a property can affect how your IVA is structured, particularly if you have equity in your home.
When an IVA is being prepared, your property and mortgage will form part of the assessment of your financial circumstances. The IVA Protocol includes specific provisions covering homeowners and how the equity in a property is calculated.
This means it’s important to tell your debt adviser about your mortgage and provide accurate information about your property.
If you’re a homeowner considering an IVA, you should also think about your future plans. If you expect to move house, remortgage, or release equity during the arrangement, discuss this with your insolvency practitioner before making any decisions.
Should you apply for an IVA if you want a mortgage?
If buying a home is one of your long-term goals, you may be worried that entering an IVA will prevent you from getting a mortgage in the future.
However, avoiding a debt solution that could be suitable for you simply because you’re worried about future borrowing could risk damaging your financial situation even more right now. If you’re struggling with unaffordable debts, dealing with them is an important step towards improving your overall financial position.
At the same time, if buying or remortgaging a property is an immediate priority, it’s important to discuss this before entering an IVA. An IVA is a financial commitment that can affect your access to credit while it is active and afterwards.
A debt adviser can look at your circumstances and explain whether an IVA could be suitable, while a regulated mortgage adviser can provide separate advice about your mortgage options.
The key is to understand how the different decisions could affect your finances before you commit to an IVA.
Considering an IVA but worried about your mortgage?
If you’re struggling with debt but you’re also thinking about buying a home, moving house, or remortgaging, it’s understandable to be worried about how an IVA could affect your plans.
However, alongside the benefits of an IVA in improving your solution of repaying debt, debt solutions affect other aspects of your personal finances.
Seek debt advice
If you are considering entering an IVA, it is important to seek debt advice to discuss all the options available to your financial circumstances. Most respected IVA companies provide free advice to help you decide on the best way forward.
They can take into account your future plans and advise accordingly. You will be able to discuss your potential plans for IVA mortgage applications or even a mortgage after an IVA.
Obtain mortgage advice
It is always important to note that debt advisors do not offer mortgage advice, and therefore we always recommend you seek mortgage advice from a regulated broker.
The mortgage market has changed significantly in the last decade, with specialist lenders available for all types of mortgage applicants.
Where it was once definitely a closed door for mortgage applications with poor credit history, there is a chance with some specialist mortgage lenders.
Speak to our debt advice team
If you wish to discuss the advantages and disadvantages of an IVA, then speak to our debt advice team today.
Our company advises numerous people daily on the best action to take to consolidate their unsecured debts.
We are governed by the Insolvency Practitioners Association and are regulated to provide insolvency advice.
Discuss your situation with one of our friendly team today by getting in touch with us. We can provide no-judgement, practical advice to support you and get your finances back on track.
Frequently asked questions
Does an IVA affect my partner’s credit score?
Your partner does not automatically have an IVA because you do. However, if you apply for a joint mortgage, the lender will assess both applicants and may consider relevant financial associations and the circumstances of both applicants.
Does an IVA stay on your credit file after completion?
An IVA can remain on your credit file for six years from the date it begins. The Individual Insolvency Register is different, with records normally removed within three months of an insolvency case ending.
Can you get a mortgage with an IVA and bad credit?
It may be possible, but having an IVA alongside other adverse credit can reduce your mortgage options further. Lenders will assess your overall financial circumstances and their own criteria.
Can you get a mortgage after an IVA?
Yes, getting a mortgage after an IVA can be possible. However, completing an IVA doesn’t immediately remove it from your credit history, and lenders may continue to consider your previous financial difficulties.
How long after an IVA can you get a mortgage?
There is no universal waiting period. Different lenders have different criteria, and your options will depend on factors including your credit history, income, affordability, and deposit.
Can you remortgage while in an IVA?
It may be possible, but taking on new borrowing during an IVA is subject to the terms of your arrangement and may require your insolvency practitioner’s approval. You should discuss your plans with them before applying.
