Getting a mortgage after completing an IVA may be more difficult, but it is not impossible. An Individual Voluntary Agreement (IVA) is a way of managing your debt and is a legal agreement between you and your debtors, usually with the help of an insolvency practitioner. An IVA will stay on your credit report for six years. If your IVA is a five-year arrangement, this will mean that it will stay on your record for one year after completion.
Getting a mortgage with an IVA or remortgage with an IVA, still on your credit report is more difficult. You will need to approach a niche mortgage advisor and you may need to supply a bigger deposit. If you have an IVA on your credit report and you are rejected for a mortgage, don’t assume this means that all mortgage providers will reject you. Sometimes, you just have to find the right lender.
In many cases, it is best to wait until the IVA has dropped from your credit report before getting a mortgage. This is because you are more likely to be offered a better interest rate. With the IVA removed from your credit report, you will be able to rebuild your credit and give lenders confidence in your ability to pay back your mortgage.
Rebuilding your credit report after an IVA is difficult but not impossible. The first step is to get a clear understanding of your position. You can do this by signing up to view your credit report with the three main credit checking agencies. These are Equifax, Experian and Callcredit.