Get a Mortgage With an IVA

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Can you get a mortgage with an IVA?

Yes, it is certainly possible. An Individual Voluntary Arrangement (IVA) can assist you in keeping up with your debt repayment, but it may still have an effect on your ability to obtain a mortgage. You might believe that having an IVA on your credit report precludes you from ever qualifying for a mortgage. However, there are lenders willing to take into account IVAs, so you don’t have to submit yourself to renting indefinitely. They will evaluate a variety of elements, including:
    • The amount of your contribution and your current income
    • Any additional bills you owe at the moment
Call us at 0115 975 5544 if you’re prepared to take the next step.

What is an IVA?

An IVA is a formally enforceable arrangement between a debtor and a lender to repay debts over a certain period of time. When someone has significant debt and doesn’t want to file for bankruptcy as a last alternative to manage their bills, an IVA may be able to help. The agreement must be drafted by a licensed professional, sometimes known as an insolvency practitioner. When filing for an IVA, you should keep in mind that they will charge for this service. For a certain amount of time, often up to five or six years, you will make an agreed-upon monthly payment. If you have many debtors, the insolvency practitioner will divide this payment among them. You will be obliged to contribute any newfound wealth—such as an inheritance—to your IVA. If you have assets like a private pension, it would be wise to take those into account when filing for an IVA as they can also be used to pay your IVA.

For what length of time would an IVA adversely affect my credit score?

Any default, including an IVA, will remain on your credit report for six years. Although your credit may take a hit due to the IVA, it doesn’t imply you can’t receive a mortgage in the future. However, just because a mortgage lender looks at your credit score is no guarantee that you will acquire a loan. If you work with one of our reliable mortgage brokers, you should be able to choose a plan that is suitable for your financial situation.