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IVA Mortgage Specialists

IVA Mortgage Specialists

No Impact on Credit Score

No Impact on Credit Score

Get Your Options Today

Get Your Options Today

Can I get a Mortgage with an IVA (Individual Voluntary Arrangement)?

Yes, there are possible options to get a mortgage whilst in an IVA, and The Mortgage Broker have a thorough understanding of this scenario. Your mortgage adviser can ensure you have the best shot at a successful mortgage application, with minimal impact on your credit file and remove the stress of searching the best options when doing this.

If you have been in an IVA, or you are still in an IVA, we at TMB, totally empathise with your position. Having worked at Payplan, the largest free to consumer Debt Management Company in the UK, our CEO, Sam Kirtikar, has very particular views on people in an IVA.

Being in an IVA can actually illustrate people who are reliably making payments in a formal arrangement, having found a solution for their previous debt position. An IVA provides an opportunity to keep ones head above water, but what we want to do at The Mortgage Broker, is help people get out of the water altogether, by finding affordable and sustainable mortgage solutions.

Debt Solutions, such as an IVA, are extremely burdensome on individuals and are a difficult situation to be in. If you are out of an IVA within the last few years, or in one currently, we will strive to understand your financial circumstances and help get you all available options. An application for a mortgage with IVA’s involved, can be complex, but they do exist.

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Are there mortgage lenders that will accept me if I have been in an IVA?

Yes, there are. The Mortgage Broker have access to multiple lenders and thousands of products, that will provide opportunities to our customers that have been in an IVA. Of course, there are important points to note, such as potentially higher rates and a more complicated application process, but our Mortgage Broker’s can remove the stress of this. Our team of bad credit specialists see various scenarios each day, and we can help you understand your financial position quickly and assess what mortgage options you may have in front of you.

  • Mortgages available whilst in an IVA
  • Post IVA options with many lenders
  • Soft searches with no impact on credit score
  • Quick affordability tests and free mortgage search
12,000+ Mortgage and protection products available to anyone that has a satisfied IVA on their credit file 96+ Lenders on our panel. Many of which are not on the high street, or that you may have heard of, but will lend money to IVA applicants.

How to Secure a Mortgage with an IVA satisfied

If you’ve completed an IVA and are considering applying for a mortgage, it’s important to know the steps you should take to improve your chances of approval. Here’s a general guide to help you navigate the process:

Consult a Bad Credit Mortgage Broker
When applying for a mortgage after an IVA, it’s crucial to disclose your IVA history to potential lenders. A specialist mortgage broker can help you identify which lenders are more likely to accept your application. These brokers have access to a range of lenders, including those who are experienced in dealing with applicants with an IVA in their past. Unlike standard high-street lenders, specialist lenders are often more flexible in their criteria.

At The Mortgage Broker for example, we work with a number of specialist mortgage lenders who consider applicants with IVAs. Consulting with a specialist broker can provide you with a clearer picture of the mortgage rates and products available to you post-IVA.

If you need assistance finding the right mortgage after an IVA, our specialist advisors are here to help.

Secure a Mortgage
Once you’ve found a property you’d like to purchase and identified a lender willing to approve your application, you can proceed with making a formal mortgage application. The process is similar to any standard mortgage application, but having a specialist broker on your side can make it smoother and more efficient.

I can't recommend the Mortgage Broker enough. My case was less than straight forward because I had a previous IVA and a couple of existing defaults. Not only did they manage to get me a mortgage... I was constantly updated on the progress of my application, and if I had a question it was always answered the same day. I am so grateful to have found such a great company and an amazing mortgage adviser.

3 Quick Steps to assess your Mortgage Affordability

Providing just a bit of information is enough for our specialist advisers to know whether there are potential mortgage options for you.

1. Tell us your financial circumstances

1. Tell us your financial circumstances

Answer a few quick questions

2. We will assess your mortgage options

2. We will assess your mortgage options

Search lenders right for you

3. We can apply for a decision in principle

3. We can apply for a decision in principle

No impact on credit score

How long does an IVA stay on my credit file?

An Individual Voluntary Arrangement (IVA) stays on your credit file for six years from the date it was approved. This is the same regardless of the initial IVA term that was agreed, whether the IVA lasts for five years, six or any number of years.

6 Years: The IVA will be recorded on your credit file for six years from the start date of the arrangement, even if you complete it earlier.
Impact on Credit: During this time, the IVA will negatively impact your credit rating, making it more difficult to obtain credit, mortgages, or loans.
Completion of the IVA: After the IVA is completed, a note will be added to your credit file indicating that the IVA has been satisfied. However, it will still remain visible for the remainder of the six-year period.

Removing the IVA: After six years, the IVA should automatically be removed from your credit file. If it isn’t, you can contact the credit reference agencies to have it removed. Once the IVA is removed from your credit file, you can start to rebuild your credit rating, but the process can take time.

Will Mortgage Applications Affect my Credit Score?

Yes, applying for a mortgage whilst you are in an IVA can affect your credit score. This can be negative if it isn’t done in the right manner and is done multiple times.

At The Mortgage Broker, your bad credit specialist will ensure there is careful planning around any application with mortgage lenders by firstly ensuring they are the right mortgage lender, with the right criteria for your circumstances. Secondly, we can do “soft searches” will don’t leave a massive footprint on your credit file. What this means is, we can assess the options and affordability and see whether a lender is likely to accept, with the mortgage lender having to do a full hard search into your credit file and financial circumstances.

 

 

Is it possible to get a Mortgage whilst in an IVA?

Yes, it is possible to get a mortgage while you are in an Individual Voluntary Arrangement (IVA). However, this can be very challenging and you really should get advice from a mortgage specialist in order to understand your realistic options. There are lenders that do allow you to get a mortgage whilst you are in an IVA though, and knowing how to present your financial profile, is really important to getting the best chance of success.

Key Points to Consider:

Mortgage options may be more limited: Most high street mortgage lenders are unlikely to approve a mortgage application from someone currently in an IVA due to the perceived high risk they have. However, there are some specialist lenders who may consider your application, with more strict criteria. Some lenders take a common approach to lending.

Higher Interest Rates: You have to be prepared to accept that your interest rates may well be higher if you get a mortgage whilst you are in an IVA. Good credit rating increases a mortgage lenders appetite to lend money, and if your credit rating is bad, they will look at that as a higher risk.

Larger Deposit Required: You will likely need a larger deposit, often around 25% or more, to secure a mortgage. This is because the lender will want to minimize their risk.

Consent from Your Insolvency Practitioner: You will need to get consent from your Insolvency Practitioner (IP) before taking on any new credit, including a mortgage, while in an IVA. This is crucial because taking on new debt could affect your ability to meet the terms of your IVA and they will need to consent to this added expense (or hopefully a reduction in expense if a remortgage!).

Impact on IVA Payments: If you obtain a mortgage, your IP may adjust your IVA payments to reflect your new financial situation. It’s important to discuss this with your IP beforehand.

Consider Waiting Until After the IVA: If your circumstances allow it, it may be better to wait to get a mortgage. However, it depends on your current mortgage circumstances, as The Mortgage Broker can search your options and advise whether it is better to wait or not.

What steps should I take when considering to get a mortgage whilst in an IVA?

Speak with an independent mortgage broker. A mortgage broker can access lenders that are suitable for mortgage applications whilst in an IVA. Also, with experience and expertise in adverse credit and poor credit files, a Mortgage Broker can hep you navigate your options and explain all the repercussions.

Check Your Credit Report: Don’t worry, your mortgage broker can check your credit file and explain it, so don’t feel like you need to know this inside out. However, it it of course beneficial to have access to your credit file and be aware of what your credit score is.

Save for a Deposit if possible: Of course we understand the circumstances with which you are in, but if you can manage to save for a deposit, this give you a better chance to secure your mortgage.

Can I get a joint mortgage with an IVA?

Yes, it is possible to get a joint mortgage if one of the applicants has an IVA or has been in an IVA. However, it of course has complexities and can be challenging.

Impact of the IVA on the Application

The IVA on the applicants credit file will make them a higher credit risk in the eyes of lenders, and therefore will be considered in the overall mortgage affordability. This can impact the terms of the mortgage, including higher interest rates and larger deposit requirements.

Many high street lenders might be hesitant to approve a mortgage application if one party has an IVA. However, some specialist lenders are more willing to work with applicants who have adverse credit histories, including IVAs.

Effect on the Co-Applicant

A joint mortgage means both parties are equally responsible for the mortgage repayments. The credit history of both applicants will be considered, and the IVA can affect the overall mortgage application.

Larger Deposit May Be Needed

Lenders may require a larger deposit to mitigate the risk posed by the applicant with the IVA and thus deemed a higher credit risk. The larger the deposit , the more the chances will be improved of getting a mortgage application approved with an IVA on the credit file of one of the applicants.

Affordability Assessment
Lenders will conduct a thorough affordability assessment, taking into account both applicants’ incomes and expenditure as they look at the full financial commitments. The IVA may mean that the applicant with the IVA needs to demonstrate a stable financial situation post-IVA or that consistent payments are maintained.

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10 ways to improve your credit rating after an IVA?

Improving your credit file after an IVA takes time, and does need careful financial management. Here are some steps you can take to help rebuild your credit score:

1. Check Your Credit Report

Firstly, Get Your Credit Reports: Get a copy of your credit report from a mainstream credit reference agency such as; Experian, Equifax, and TransUnion. Be careful to check the fees, you can do a free trial on these, but you need to cancel!

Correct the IVA Has Been Removed! : Ensure that all information is accurate and that the IVA is marked as satisfied or completed! If there are any errors, dispute them with the credit agency and ensure that your file reflects your current position.

2. Register on the Electoral Roll

Register to Vote: This helps everyone with credit rating and just one of those things. Being on the electoral roll helps lenders verify your identity, which can improve your credit score. Make sure your details are up to date.

3. Manage Your Existing Credit

Keep Credit Balances Low: If you have any existing credit accounts, try to keep the balances relatively low compared to the credit limit amount. This is known as a low credit utilisation ratio, which can positively impact your score.

Keep Paying on Time: Make sure to pay all monthly commitments on time – including bills, utilities and credit cards. Late payments can further damage your credit score.

4. Use a Credit-Building Card

Apply for a Credit-Building Credit Card: These cards are designed for those who have poor credit or those looking to rebuild their credit score. They do come with higher interest rates and lower limits, and we mention this with great caution.

Use It Responsibly: Use the card for small purchases and pay off the balance in full each month to avoid interest charges and any damage to your credit file. This will show that you can manage credit responsibly and will support you in illustrating you are trustworthy with credit.

5. Consider a Secured Loan

A secured loan can help you with your credit file as it can enable you to borrow against a saving account or another asset. Always ensure you can comfortably make the payments and this will again illustrate your are not a credit risk.

Consistent, on-time payments will gradually improve your credit score.

6. Avoid Applying for Too Much Credit

Limit Applications: Each application for credit results in a hard inquiry on your credit report, which can temporarily lower your score. Try to space out credit applications.
Only Apply When Necessary: Focus on using and managing any existing credit responsibly rather than applying for new credit frequently.

7. Keep Old Accounts Open

Maintain Long Credit History: If you have older credit accounts that are in good standing, keep them open. A longer credit history can positively influence your credit score.

8. Use a Budget

Manage Your Finances: Create a budget to manage your income and expenses effectively. Staying on top of your finances will help you avoid late payments and other issues that could harm your credit score.

9. Seek Professional Advice

If you’re unsure where to start or need personalized advice, consider speaking with a financial advisor who can help you create a plan to rebuild your credit.

10. Be Patient

Time is Key: Rebuilding your credit score after an IVA will take time, often several years. Consistently managing your credit and finances well is the best way to improve your score over time.

By following these steps and demonstrating responsible financial behaviour, you can gradually rebuild your credit score after an IVA.

What is an IVA (Individual Voluntary Arrangement)?

An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors to repay your debts over a set period of time that is pre agreed. (typically this is five to six years). It is a form of insolvency that is available in the UK and is designed as a formal version of a debt management plan and an alternative to bankruptcy.

An IVA is essentially a negotiation on how much creditors will be willing to accept instead of receiving their full payments. The aim being for them to receive some of the money they are due, and the individual not being forced further down a route in which they cannot survive financially, and end up with bankruptcy.

Key Features of an IVA:

Debt Repayment Plan: An IVA enables you to make one consolidated and affordable monthly payment towards your debts. this is then distributed among your creditors. The amount you pay is based on what you can afford after covering your essential living expenses and there will be a full income and expenditure plan when entering into an IVA.

Legally Binding Agreement: Once an IVA is agreed upon, it becomes legally binding and the creditors that are included in the IVA cannot take further legal action against you directly, and in fact shouldn’t really contact you directly either. For example when obtaining a County Court Judgment (CCJ) or pursuing bankruptcy.

Interest Frozen: During the IVA, interest payments and other charges on your debts are typically frozen, so your debts do not increase while you are making payments. The aim being to settle an agreed amount to all creditors that is repaid.

Pre Agreed Debt Forgiveness: At the end of the IVA term, any remaining unsecured debts included in the arrangement are written off, if all agreed terms have be stuck to. This means you are no longer legally required to pay these off, and you are clear of the debt.

Administered by an Insolvency Practitioner (IP): An IVA must be set up and managed by a licensed Insolvency Practitioner. They will assess your financial situation, conducting a full income and expenditure, and propose the IVA terms to your creditors. They will then manage the payments and communications.

Affect on Credit Rating: An IVA will remain on your credit file for six years from the start date.

Home and Assets: If you own your home or other significant assets, these should be taken into consideration when considering whether an IVA is a suitable option. it is possible, that equity can be released to pay off your debts.

Who can get an IVA?

An IVA is suitable for individuals who have a regular income stream, and substantial unsecured debts (such as credit cards, loans, or overdrafts). If you are struggling to keep up with payments, it maybe the right opportunity to prevent spiralling further and ending up with more severe consequences such a bankruptcy or losing your home.

Considerations Before Entering an IVA:

Long-term Commitment: An IVA is a long-term commitment, usually lasting five to six years.

Restrictions: You may face restrictions on your spending and borrowing during the IVA.

Impact on Job: In some professions, having an IVA could affect your employment, especially if you work in finance or law.

An IVA can be a viable option for those who are struggling with debt and need a structured way to manage repayments, but it is essential to consider all options and seek professional advice before proceeding.

Speak to an IVA Mortgage Specialist today

Contact The Mortgage Broker Today

Contact The Mortgage Broker today for free, no obligation mortgage advice. Bad credit files are a standard thing that our team see every day. Please don’t just assume you can’t get a mortgage with an IVA on your credit file, as this is simply not the case. There are hundreds of lenders in the market that can take a common sense approach to people in various situations in need of borrowing money for different circumstances. Mortgage Lenders are the same. Not all of them of course, but we work directly with Mortgage Lenders that will accept your IVA mortgage application.