Getting a mortgage with an IVA
There is no reason why someone can’t apply for a mortgage with an IVA. It will likely be more difficult and cost you more in fees, such as deposit and interest rates.
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Updated: August 18th, 2025
Can I get a mortgage with an IVA?
Yes, it is possible to get a mortgage with an IVA, although its impact on your credit rating will significantly affect your application. Lenders will thoroughly review your credit score, which plays a major part in how they view you as a borrower.
If they spot recent bad credit issues like an IVA, it will instantly raise a red flag, as they will perceive you as a risky borrower. This can make it more difficult to find suitable mortgage with an IVA products, and if you do find them, they may come with special conditions imposed, such as higher interest rates or larger deposit requirements.
Most mainstream lenders will reject your application, but there are specialist lenders focusing on bad credit mortgages who may be prepared to offer you a mortgage with an IVA.
Getting a mortgage while actively in an IVA
Being within the period of an active IVA presents particular challenges for getting a mortgage with an IVA. While not impossible, your options will be very limited. The main problem lies in being able to save up or obtain the necessary funds for a deposit.
Your insolvency practitioner will typically require all available monies (barring living expenses, as outlined in your terms) to be used to pay off debts.
It simply might not be possible to put money aside or sell a higher-value asset for a deposit on a mortgage. All mainstream providers will decline to proceed with any lending once they see you have an active IVA to your name.
The impact of an IVA on your mortgage application
An IVA will remain on your credit records for six years after it is registered, even if it’s completed before then. Even after that time, if a lender asks you if you’ve ever been subject to an IVA, you must answer honestly.
To get a mortgage with an IVA (whether active or completed), you will almost certainly need to approach a specialist lender who is willing to look beyond your immediate issues.
However, their products will usually come with higher-than-average interest rates and fees, reflecting the increased risk.
To get a mortgage with an IVA, the amount of deposit required will heavily depend on how much time has passed. Remember, the more time has passed, the lower the deposit requirements will be.
This is because by providing a larger deposit you are mitigating your lender’s risk exposure, as they won’t need to lend as much against the value of the property.
This means that if you weren’t able to make payments, your lender wouldn’t have as much money tied up in the property compared to someone that provided a smaller deposit.
If you are currently in an IVA or have very recently settled one, you may require a minimum deposit of around 30%.
If 6 years has passed and the IVA is no longer on your credit file, you may expect lower deposit requirements. For example, you may only be required to put down 5% to 10% of the property’s value.
Keep in mind that a range of other factors can influence how much deposit you will need when applying for a mortgage with an IVA. Things like your income and more recent credit history will all influence a lender’s requirements for your application.
It’s best to speak to a mortgage broker, who can give you the most accurate idea of your deposit requirements based on your circumstances.
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What mortgage lenders are available?
You are most likely not going to be able to access your normal high street lender shortly after you’ve settled an IVA. Instead, you’ll need a lender who specialises in helping people get a mortgage with an IVA on their credit file.
Although they are smaller than mainstream banks and building societies, they still must comply with the FCA’s lending rules, meaning your home is just as secure.
There are plenty of lenders who consider applicants for mortgages with an IVA, each with their own criteria for the nature of the arrangement. As the mortgage market is fast-moving and competitive, there are new offers and products being created all the time. There has never been a better time for people with poor credit histories to get the home loan they need.
One thing to bear in mind is that some specialist lenders typically only accept applications for a mortgage with an IVA through a professional intermediary like us, so you will need to work with a trusted broker to access their products.
Can I remortgage with an IVA?
It’s possible to remortgage with an IVA. Discussing your situation with a specialist advisor can make this process quite straightforward. At The Mortgage Centres, we will give you solid guidance and provide you with access to specialist mortgage lenders.
When speaking to a specialist broker, they will get to understand your circumstances. You’ll then be given solid recommendations for the most favourable route forward for your mortgage application.
It is possible to remortgage to pay off an IVA, but before doing so it’s worth examining all the factors around your situation.
Remortgaging to pay off existing debts can be an attractive route for many. The interest rates offered could be less than for other kinds of secured loans or some credit cards. Whether this is true in your case will largely depend on the terms of your IVA. Bear in mind that your home will be used as security against the IVA.
Either way, it is highly unlikely that a high street lender will consider your remortgage application, so using a mortgage broker to access a specialist lender will be your only opportunity.
Selling your house if you have an IVA is possible. However, it can be complicated because your creditors may have a right to your assets if you convert them into cash.
For some, selling your house to clear your IVA is an attractive way to settle your debts. It can also be typical for an insolvency practitioner to demand that a property be remortgaged or sold if you have a high enough level of equity in it.
As your home is effectively security for the IVA and your creditors, you can’t sell it without consent from the insolvency practitioner or IVA firm. However, bear in mind that every IVA firm has their own terms and conditions.
You should also be aware of any adverse consequences of selling your house to end your IVA. Depending on how your IVA was set up, the insolvency practitioner could ask for significant costs in addition to the amount owed to settle it, costing you more than if you had simply followed the terms of the IVA.
It may be possible to make an official offer for a final settlement. To do this:
- Calculate the remaining amount you owe to your creditors.
- Ensure you have enough equity in your property to cover that amount.
- Additionally, make sure you can cover an extra year’s worth of payments.
Once your IVA has reached the end of its term and has been satisfied, you are free to sell your house whenever you like.
Improve your chances of getting a mortgage with an IVA
If you are looking to get a mortgage with an IVA, there are a few steps you can take before you apply to put you in the best position for success:
Taking steps to improve your credit score before applying for a mortgage with an IVA can be key. Your credit history plays a big part in a lender’s affordability assessment and can make or break you getting a more competitive mortgage product.
If you have previously had an IVA within the past six years, then it will be in your credit history for lenders to see. If your more recent credit is also bad, this will raise concerns for lenders.
So, improving your recent credit is a great way to show lenders that you are now able to better manage borrowed finances.
By providing a larger than average deposit for a mortgage with an IVA, lenders will find your application much more attractive compared to someone in the same position with an average deposit.
This is due to the reduced risk a lender would be taking on, as they will not have as much of their money tied up in your property. Therefore, if you were unable to make payments, it wouldn’t impact them as much as someone who borrowed more and put down a smaller deposit.
An IVA completion certificate is a document that recognises that you have successfully completed your IVA and are no longer legally tied into the agreement with the insolvency partners and creditors you owed money to.
Your completion certificate will be sent to you by your insolvency practitioner in the form of a letter[1].
The certificate is a great way to show lenders that you are now out of an IVA and no longer in debt which goes a long way when applying for a mortgage with an IVA.
Specialist IVA mortgage broker
It is evident that getting a mortgage with an IVA can be quite a complex and personal process, so using a specialist mortgage broker with extensive industry knowledge will help you massively. They will ask the right questions to help understand your circumstances and identify a specialist lender for you to use.
To get specialist advice on getting a mortgage with an IVA, please contact us today to arrange your free, no-obligation initial consultation.
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FAQs: Getting a mortgage with an IVA
An Individual Voluntary Arrangement, or IVA, is a legally binding document. It’s a formal agreement between an individual person and their creditors. Understanding this formal agreement is the first step when considering a mortgage with an IVA.
An insolvency practitioner will create one, the court must approve it and then it will be added to the Insolvency Register. An insolvency practitioner’s job is to go over your finances and work out a payment plan to settle your debt. They will then act as an intermediary between you and your creditors for the duration of the IVA (usually five years), and can also offer advice relevant to a future mortgage with an IVA.
If it’s accepted, any charges and interest on the account will be frozen, and your creditors will not be able to demand any more money. You then make payments to the insolvency practitioner, who will deduct their fee (if applicable) and pay your creditors.
Provided you keep up with payments, any debt not paid at the end of the term will be written off. The record of the IVA will then be removed from the Insolvency Register.
An IVA will usually last for five years, during which time you will pay agreed instalments to your creditors to pay off your debt. When this period ends, the debts will be considered cancelled. Even if the IVA didn’t pay off everything you owed, you won’t have to repay the remaining balance to your creditors.
Your IVA will show on the Insolvency Register until it is removed after five years but will still show on your credit record for six years.
Once discharged, the Insolvency Practitioner will send you a completion certificate confirming you have made all the necessary payments. You should scan this and keep it in a safe place in case you need it in future.
Additionally, the Insolvency Service will take your details off the register and inform the main credit reference agencies in the UK.
We recommend you get copies of your credit reports from each of the agencies 4 or 5 weeks after you receive a completion certificate. You can then ensure all the information is correct and up to date.
When the IVA has been discharged, the Insolvency Practitioner will send you a completion certificate that confirms in writing that you have made all the necessary payments under the arrangement. You should scan this and keep it in a safe place in case you need it in future.
Additionally, the Insolvency Service will take your details off the register and inform the three main credit reference agencies in the UK – Experian, Equifax and Callcredit – to update their records. We recommend you also get copies of your credit reports from each of the agencies a 4 or 5 weeks after you receive a completion certificate to make sure that your details are now updated and correct.
Credit records span six years, and your IVA start date is the reference point for how long it will show on your file. If it started more than six years ago, it will no longer appear. However, the loan-to-value (LTV) ratio will depend entirely on the lender and their criteria, whether it still shows or not.
Generally, the more recent the IVA, the lower the LTV ratio you are likely to be offered. This is not dependent on the status of the IVA alone. The lender’s top concern is protecting their money. If they see you as a greater risk, they will establish terms to minimise potential losses if things go wrong.
It is possible to get a joint mortgage if one applicant has an IVA on the credit record. However, you will have to use a specialist lender that isn’t accessible on the high street.
Furthermore, the lending criteria are likely to be strict when compared to a standard mortgage and increased costs may apply.
Typically, an IVA will last for 5 years. After this period, it will typically be easier to get a mortgage. Although it is still possible to obtain a mortgage during this period.
If you are looking to do so, reach out and one of our specialist advisors will be in touch.
[1] PayPlan, What is an IVA Completion Certificate? (n.d.) – https://www.payplan.com/iva/iva-completion-certificate-2/
About the author
Phil Scott: Director
Phil has worked in the financial services industry since 1992, having started with a large insurance company. He went self employed in 1996 as an Independent Financial Adviser before setting up his first company, Needham Market Home Financial in 1999.
After four years, he decided to concentrate solely on mortgages and related insurances, and The Mortgage Centres was born. Since then, Phil has been influential in the opening of several new offices as the business continues to grow.
Qualifications:
- Financial Planning Certificate: 1, 2 & 3 | Year Attained: 1992
- Certificate in Mortgage Advice and Practice (CEMAP) | Year Attained: 2001
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