Is it impossible to obtain a mortgage until 6 years after IVA finish date?

January 2, 2019
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An IVA is an abbreviation for an Individual Voluntary Arrangement. This is a legally binding agreement with your debtors to pay back a portion of your debts over a fixed period, usually five years. An IVA is often a better solution for the debtor and creditor as it is an alternative to bankruptcy.

A record of your IVA will remain on your credit report for six years, and this can have an impact on your ability to take on further debt, including a mortgage. Even if the debt it affordable with your current circumstances, the presence of an IVA can make some lenders concerned about your ability to pay back debts on time.

The IVA will be visible on your credit report for six years, so this could be a further 12 months after you have received your IVA Completion Certificate. In many cases, it is best to wait until the IVA has dropped from your credit report before trying to secure a mortgage. However, there are some instances where you could secure a mortgage before the IVA has gone from your record.

Not all lenders approach this issue in the same way. Some lenders will automatically rule out an applicant with an IVA, while others will consider them if they can provide a bigger deposit, for example. If you are determined to secure a mortgage with an IVA on your record, the first step should be to look at your credit report across all three credit reference agencies.

These are Callcredit, Experian and Equifax. Once you have a clear view of your position, you can approach niche mortgage providers to see if any of them will consider your application.

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