An Individual Voluntary Arrangement (IVA) is one of the more serious forms of adverse credit you can have on your file, but it does not mean homeownership is permanently out of reach. Whether you are still in an active IVA or have completed one, there are mortgage options available through specialist lenders. Your choices will depend on the stage of your IVA, how long ago it was completed, and your overall financial position.
For a broader overview of how adverse credit affects mortgage applications, see our complete guide to bad credit mortgages.
What is an IVA and how does it affect your credit?
An IVA is a legally binding agreement to repay a portion of your debts over five to six years, and it stays on your credit file for six years from approval — making it one of the more serious adverse credit marks lenders will see. It is a formal insolvency procedure, arranged through a licensed insolvency practitioner, and provides an alternative to bankruptcy for people who cannot afford to repay their debts in full.
During an IVA, you make regular payments to your insolvency practitioner, who distributes the funds to your creditors. At the end of the arrangement, any remaining included debt is written off. However, an IVA is recorded on the Individual Insolvency Register and on your credit file, where it remains for six years from the date it was approved.
From a mortgage lender's perspective, an IVA is considered a significant adverse credit event — more serious than defaults or CCJs, though generally less severe than bankruptcy. It indicates that you were unable to meet your debt obligations and entered a formal insolvency process.
If you are currently in an active IVA, you typically need written permission from your insolvency practitioner before taking on any new borrowing, including a mortgage. Applying without this permission could put your IVA at risk of failure.
Can you get a mortgage while your IVA is still active?
Getting a mortgage during an active IVA is extremely difficult — you will need written permission from your insolvency practitioner, and only a tiny number of specialist lenders will consider your application. The primary obstacles are:
- Insolvency practitioner permission: You will need written consent from your IP before applying for any credit, including a mortgage. They may refuse if they believe additional borrowing would jeopardise your ability to maintain IVA payments.
- Extremely limited lender options: Very few lenders will consider an application from someone in an active IVA. Those that do will charge significantly higher interest rates.
- Affordability constraints: Your IVA payments will be factored into your affordability assessment, reducing the amount you can borrow.
- Large deposit required: If a lender does consider your application, you will likely need a deposit of 25% or more.
In most cases, it is advisable to wait until your IVA has been completed before applying for a mortgage. The options available after completion are significantly better in terms of lender choice, interest rates, and deposit requirements.
How soon after completing an IVA can you get a mortgage?
Some specialist lenders will consider your application from the day your IVA is completed, with options improving significantly after 12 months and again after 2–3 years. The key factor is how much time has passed since the IVA was completed, and whether it has dropped off your credit file.
| Time since IVA completion | Lender options | Typical terms |
|---|---|---|
| Less than 12 months | Very limited specialist lenders | 20–25% deposit, higher rates (7–9%) |
| 1–2 years | Growing number of specialist lenders | 15–20% deposit, rates around 6–8% |
| 2–3 years | Wider specialist and some near-prime lenders | 15% deposit, rates around 5.5–7% |
| 3+ years (still on file) | Good range of specialist and near-prime lenders | 10–15% deposit, more competitive rates |
| 6+ years (off credit file) | Mainstream lenders available if no other issues | Standard deposit and rate criteria |
The table above provides general guidance — your individual circumstances, including any other adverse credit, your income, and the property you wish to purchase, will all influence the specific options available to you.
An IVA provides a structured route out of unmanageable debt, and successful completion demonstrates to future lenders that you honoured your commitment to repay what you could afford.
What do mortgage lenders look for after an IVA?
Lenders focus on time since completion, your credit conduct since the IVA, deposit size, and the reason for the IVA — successful completion with clean credit afterwards is far more favourable than a failed arrangement. Here are the specific factors specialist lenders typically consider:
- IVA completion status: Has the IVA been successfully completed, or did it fail? Successful completion is viewed much more favourably, as it shows you met your obligations.
- Time since completion: The more time that has passed since the IVA ended, the better. Many lenders have minimum time requirements, typically 12 to 36 months post-completion.
- Credit conduct since: Have you maintained a clean credit record since the IVA? No new adverse credit is essential. Evidence of rebuilding credit responsibly (such as a credit-builder card paid in full each month) is helpful.
- Deposit size: A larger deposit reduces the lender's risk. For IVA applicants, 15–25% is typically the range, with more options opening up at 20%+.
- Affordability: Can you comfortably afford the mortgage repayments alongside your other financial commitments? All FCA-regulated lenders must conduct a thorough affordability assessment.
- Reason for the IVA: Some lenders may ask about the circumstances that led to the IVA. Events such as redundancy, illness, or relationship breakdown may be viewed more sympathetically than persistent overspending.
How can you improve your chances of getting a mortgage after an IVA?
- 01
Obtain your completion certificate
When your IVA is completed, your insolvency practitioner should issue a completion certificate. Keep this safe, as lenders or brokers may ask to see it as proof that the IVA was successfully concluded.
- 02
Check your credit file is accurate
Verify that all three credit reference agencies (Experian, Equifax, TransUnion) show the IVA as completed. If the IVA has been completed for more than 6 years since registration, ensure it has been removed. Dispute any inaccuracies.
- 03
Start rebuilding your credit
Consider a credit-builder credit card, using it for small purchases and paying the balance in full each month. This builds a positive track record. Register on the electoral roll if you have not already.
- 04
Save the largest deposit possible
A larger deposit dramatically improves your options post-IVA. Aim for 15% at minimum, and 20–25% if possible. This reduces the loan-to-value ratio and makes lenders more comfortable.
- 05
Maintain clean credit
After completing your IVA, it is vital not to take on any new credit you cannot manage. Any new adverse credit on top of a completed IVA will severely limit your mortgage options.
- 06
Speak to a specialist broker
A broker experienced in post-IVA mortgages will know which lenders have the most favourable criteria for your specific situation and can guide your application to maximise the chance of approval.
How does an IVA compare to other types of adverse credit for mortgages?
An IVA is more serious than defaults or CCJs because it is a formal insolvency event, but less severe than bankruptcy — so your mortgage options sit between these two extremes. You may also find it useful to read our related guides:
- Getting a mortgage with a CCJ — CCJs are generally viewed as less severe than an IVA
- Getting a mortgage with defaults — defaults are typically the least severe common adverse credit issue
- Getting a mortgage with a debt management plan — DMPs are informal and generally less impactful than an IVA
- Getting a mortgage after bankruptcy — bankruptcy is the most severe form of insolvency
To get an indication of what you might be able to borrow, try our affordability calculator. Bear in mind that specialist lenders may use different income multiples than mainstream lenders.
- A completed IVA does not permanently prevent you from getting a mortgage — specialist lenders consider applications from day one after completion.
- Getting a mortgage during an active IVA is extremely difficult and requires permission from your insolvency practitioner.
- The longer since your IVA was completed, the better your options — lender choice, rates, and deposit requirements all improve over time.
- A clean credit record since completion is essential — any new adverse credit will severely limit your options.
- Aim for a 15–25% deposit to access the widest range of specialist lenders and the most competitive rates.
- A specialist broker is invaluable for navigating the post-IVA mortgage market.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.