An individual voluntary arrangement – or IVA – is an alternative option for anyone keen to avoid bankruptcy, where you enter into a formal and legally binding agreement with your creditors to pay back what you owe over a set period of time.
As with any financial decision, it’s important to do your research into the pros and cons of these agreements to make sure they’re the right fit for you, especially if you have plans in place to buy a home in the future.
While it is certainly possible to get a mortgage if you do have an IVA, it often comes down to individual circumstances and, as such, you may find it necessary to find a specialist lender who offers mortgages to those with active IVAs or borrowers who have had such agreements in the past.
It is possible that you won’t be considered for the lowest mortgage rates but you may well be able to find products that are competitive. If your IVA Is still active, it is likely that applying for a mortgage with a high street lender will see your application denied, because your IVA will show up on your credit file.
Your credit report is one of the main areas for investigation that lenders will look at when considering you for a mortgage and you will be viewed as high risk because of your IVA.
Approval for your mortgage will depend on your individual financial circumstances and lenders look at each application on a case by case basis, so there isn’t a one size fits all approach you can adopt.
If you’d like to find out more about mortgages with IVAs, get in touch with one of our brokers specialising in bad credit mortgages.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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