Is it possible to get a mortgage after an IVA?

When someone arranges an Individual Voluntary Arrangement (IVA), the duration can be as much as 6 years, which can seem like a long time. During that period, circumstances change, which could result in an increased desire to own your own home. So the obvious question is, can you get one?

The good news is that there are options available to you, even if you have had struggles with money in the recent past. The high street, mainstream lenders aren’t the only mortgage companies around, as there are a growing number of companies that cater for those with less than perfect credit. By using a specialist mortgage broker you will find that you might be able to secure a great deal on a mortgage from high st lenders that wouldn’t necessarily be available to you direct.

6 year term

From the date your IVA was registered, it will invariably stay on your credit file for a period of 6 years. 6 years after your IVA start date it will drop off your credit file, you will, however, have to declare it on your mortgage application.

The date of your last default should be before this date, so if it’s not showing up that way with all three credit reference agencies, you need to inform the relevant creditors of the error in writing to make the required amendments.

If you’ve already applied to a high street lender and been turned down, you shouldn’t take this as the final say so, as there are specialist brokers with access to mortgages that are not from the mainstream. By using one of our recommended mortgage brokers, it is possible to get approved for a mortgage with between 10-20% deposit after the IVA has cleared from your file. A failed Mortage application will harm your credit score, so it’s best to get it right the first time. We advise you to speak to a specialist broker and learn how to clean up your credit file post IVA.

Improving your credit score

The more work you put into improving your credit score, the more your chances of mortgage success are going to improve. By obtaining a Bad Credit Credit Card like a Vanquis card and running a low balance (between 10-15%) that you pay off each month, you might be surprised at how much it improves your score. The reason is that this is a demonstration of your ability to use credit responsibly and this goes a long way with companies that offer mortgages.

For more tips on how to improve your credit score after an IVA, take a look at our post IVA credit file clean up guide.

Affordability

The other thing you’ll have to display is the affordability of the mortgage you’re applying for. If your income proof supports your argument and you have the required deposit for an 80-90% to value mortgage, there’s every reason why you should be successful.

Speak now with one of our recommended niche mortgage brokers for advice and guidance on achieving your mortgage dreams.

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