Can I get a mortgage with an IVA

You've come here for a reason. You're not the first, not are you the last person that will wonder the same thing. !Can I get a mortgage with an IVA?"

Well, the short answer is yes.

The long answer is more complicated than that. I’ll keep the article short and sweet so you’re not having to read for a long time to get the info you want.

How does an IVA affect my mortgage chances?

Negatively. Whilst still within the IVA you will struggle to find a lender that will allow you to obtain a mortgage.

However, once you are out of the mortgage… Then it’s a case of time for how likely you are to be accepted. Getting a mortgage even after an IVA can still be quite a challenge though so making sure you have a broker who is well versed in severely adverse credit is incredibly important to your chances of being accepted.

How does time affect my chances?

Greatly. There are a few scenarios to look out for.

If you have offered a settlement figure before your IVA is due to finish then it will still be quite difficult to obtain a mortgage from the first day out. That’s not to say it can’t be done, however, you will be going onto less favourable rates, alongside needing a higher deposit, generally a minimum of 20%.

If your IVA was registered over 5 or more years ago then there are some mainstream, lenders that may be able to consider something to help get you onto the property ladder or get you a remortgage on your current home.

IVA’s last on your credit report for 6y. This means that once the IVA has passed 6 years from registry, not settlement, and is off the file. Your chances of obtaining a mortgage are substantially greater.

The longer it has been from either being satisfied or from the reported registry date, the better your chances are of obtaining a mortgage.

How to get a mortgage after an IVA

Going at obtaining a mortgage through normal high street lenders can be an extremely difficult task as most high street lenders do not lend to people with an IVA whether it is settled or not within the past 6y.

It will mostly likely be a specialist lender, some of the likes you have never heard of before that only deal with intermediaries. It’s also not quite as easy as going to a specialist lender and asking them politely.

This is usually due to an IVA being the final straw throughout numerous other credit issues such as defaults, CCJ’s, arrears and possibly repossession. With the latter being extremely difficult to obtain a mortgage with if you have had previous history of.

So, as you can probably see, it’s tough. However, it’s not impossible and is based so heavily on personal circumstances that there is no one size fits all. As much as I’m sure you wanted to hear that.

Setting yourself up for success

There are a couple of things you can do when an IVA has been on your track record. This includes the thing you probably didn’t want to hear but waiting, paying the IVA off, as well as speaking to a professional who is able to place you with the lender best suited to your circumstances to decrease the risk of being declined.

Due to most brokers not dealing with severely adverse credit, going with an adverse specialist broker can be the difference between moving into your new home, and a declined case where it feels as though all hope is lost. So when you are looking into moving, or remortgaging.

So when you feel like it's not possible and the number are stacked against you. Get in touch. After all, we are "beyond the numbers".