IVAs and Mortgages

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Getting a mortgage with an IVA is obviously more complex than without. However it does not necessarily mean you can not get a Mortgage or that it needs to cost more. The devil is in the detail and the aim of this post is to give a bit of an overview of the potential options.

How long does my IVA need to have been settled before getting a Mortgage?

This to some extent depends on you. The longer the IVA has been paid off, the more options and the better options you will have. That can come in 2 aspects, the obvious one being lower interest rates but also a smaller deposit may be required.

Every lender differs in how they assess an IVA. Some work from the start date of the IVA and some will work off the date it was settled. Typically your options come in bandings. Those bandings are usually settled at time of completion, settled for 1 year, 3 years or 6 years. The longer it has been settled the more options you have.

Once the IVA has been settled for 6 years, you should have around 95% of the lenders out there available to you. There are a couple who if they were part of the IVA may still hold a grudge well after everything has dropped off your credit report. Mortgage lenders may use internal records on you but you should still be looking at normal rates.

Typically once you have been discharged from the IVA for 3 years, you can start to look at normal or near normal rates with a 15% deposit. Less than 3 years and you are looking at a bigger deposit and or higher interest rates.

Can I get a Mortgage with an active IVA?

It is possible to get a mortgage with an active IVA. However it would need to be paid off by the time the mortgage completes. A good example here could be if you are in an IVA and looking to move home, you may sell your current home and with the equity, you could clear the IVA and use the remainder towards the deposit for the new property. However, this would usually require a 40% deposit and rates are going to be around the 5% mark in the current climate – although this is subject to change.

IVAs and Mortgage Success stories

Over the years we have done a number of mortgages for customers who are in or have been in IVAs. Below are a couple of examples of people we have been able to help:

The applicant currently in an IVA – This was a first for us! We have always looked to help applicants with bad credit however we had never received an enquiry from someone currently in an IVA. This is the story of someone we were able to help last year.

IVA Success story – This was a nice story of someone who went to a different broker before they came to us. They had 2 applications declined but thankfully they did not give up. We were able to get it accepted first time with a rate of 2.7%

IVA & Self employed – This was an interesting case for us. An IVA application that was declined due to the applicants job and how covid may affect it. It was not declined due to criteria, but more underwriters discretion. This is the story of how we fought back against the underwriter and won.


IVAs can be complicated to overcome and even brokers can struggle – that includes ourselves as per the example above. However, getting the right broker can make the world of difference. A declined application is not necessarily the end of the road and I thought providing some examples would be good to evidence that. Even we get declined applications, but if we believe in you as a customer we will have your back and we will fight for the mortgage.