Can I get a mortgage after an IVA?

Key takeaways

• It may be possible to get a mortgage after an IVA – but expect fewer lender options, a larger deposit requirement and potentially higher interest rates than someone with a clean credit history.

• Timing matters: most lenders prefer the IVA to be completed, and many are more flexible once it has dropped off your credit file (usually six years from the start date).

• A bigger deposit can significantly improve your chances by lowering your loan-to-value and reducing lender risk.

• Rebuilding your credit is crucial – clean recent payment history, low existing debt, and a stable income can all strengthen your application.

What is an IVA and why does it affect getting a mortgage?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to repay debts over a set period (usually 5–6 years). An IVA is set up through an insolvency practitioner.

An IVA freezes interest and charges, allowing you to pay an affordable monthly amount, with any remaining unsecured debt written off upon completion

An IVA is a type of insolvency and it is recorded on your credit file for a set period, which is why it can affect your ability to get a mortgage.

What does an IVA tell lenders?

From a lender’s point of view, an IVA signals that:

• You’ve previously struggled to repay credit

• You entered a formal insolvency solution

• There was a significant risk of non-payment in the past

Mortgage lenders price their deals based on risk. Someone with no history of missed payments is generally considered lower risk than someone who has entered an IVA. That doesn’t mean you’ll automatically be declined – but it can mean fewer lenders to choose from and stricter criteria.

How long does an IVA stay on my credit file?

An IVA usually stays on your credit file for six years from the start date, whether or not it has been completed earlier.

Even if your IVA lasts five years and you complete it successfully, it will remain on your credit report until six years from the original start date.

Will the IVA show anywhere else?

Your IVA will be listed on the public Individual Insolvency Register all the time it’s active. After completion, your details are usually removed within three months.

Lenders don’t usually rely on the register alone – they will look at your credit file too.

How long after an IVA can I apply for a mortgage?

Technically, you can apply for a mortgage at any time. In practice, your chances improve significantly as time passes.

It can be possible to get a mortgage during the first few years of an IVA. But you will usually need a specialist lender, a large deposit (20%+), and to pay higher interest rates.

It will be easier to get a mortgage 6 years after your IVA start date, as this is when it drops off your credit file, potentially allowing access to mainstream lenders.

Do lenders look at the IVA start date, completion date, or both?

Different lenders take different approaches to IVA start and completion dates. For example:

• Credit files use the start date, the IVA disappears six years after approval.

• Some lenders ask whether you’ve ever been insolvent, even if it’s no longer on your file.

• Specialist lenders may accept applications sooner, sometimes even within a year of completion..

• Some specialist lenders may consider applicants one to two years after completion, while many mainstream mortgage lenders prefer the IVA to be fully completed and/or removed from your credit file (six years from start).

What happens once the IVA drops off?

Once six years have passed from the start date, the IVA should automatically disappear from your credit file. At that point, some high-street lenders may treat your application more favourably – assuming your more recent credit history is clean.

However, you may still be asked questions such as: "Have you ever been subject to an insolvency arrangement?".

You must answer honestly. Even if the IVA no longer appears on your credit report, failing to disclose past insolvency could cause problems later.

How long until an IVA is removed from the Insolvency Register?

Once your IVA ends, your details are usually removed from the Individual Insolvency Register after about three months. If it remains listed beyond that, you can contact the Insolvency Service or your insolvency practitioner to have it removed.

Do I need to wait until my IVA is completed to get a mortgage?

In most cases, yes, you’ll need to wait until your IVA is complete to get a mortgage.

Most lenders won’t consider an application until the IVA is fully completed, and you’ve received your completion certificate.

A handful of specialist adverse credit lenders may consider offering a mortgage before this happens, but:

• You’ll need a very large deposit

• Rates will be significantly higher

• You’ll need written permission from your IVA supervisor

For most people, it’s more realistic to wait until the IVA is finished.

Can you get a mortgage while an IVA is active?

It’s usually very difficult to get a mortgage while your IVA is ongoing. Most lenders will decline applicants who are still in an active insolvency arrangement.

There are two main reasons for this:

• Your disposable income is already committed to your IVA payments

• You typically need your insolvency practitioner’s permission to take on new borrowing

Some niche lenders may consider your mortgage application while your IVA is active, but expect very limited options and high rates.

What proof will I need once it’s finished?

After completion of your IVA, you’ll need:

• Your IVA completion certificate

• Updated credit files showing the IVA as ‘completed’ or ‘satisfied’

• Evidence that defaulted accounts are marked as settled or partially settled

It’s a good idea to check your credit reports with all three major credit reference agencies before applying for a mortgage after an IVA.

If my IVA is completed but showing incorrectly, what should I do?

If your credit file still shows the IVA as active, has incorrect default dates, or lists debts as outstanding even though your arrangement has been completed, it’s important to act quickly.

Errors like these can negatively affect your credit score and potentially harm a mortgage application.

Start by checking all three of your credit reports (with Experian, Equifax and TransUnion) to confirm the issue, then raise a formal dispute with the relevant credit reference agency.

You should also contact the creditor directly and provide a copy of your IVA completion certificate as evidence.

Lenders rely on accurate reporting, so ensuring your file correctly reflects that your IVA has been satisfied can make a meaningful difference to your borrowing options.

How much mortgage deposit do I need after an IVA?

Deposit size is one of the biggest factors determining whether you’ll be accepted for a mortgage, and it’s even more important after an IVA.

Even once an IVA is complete, lenders may still ask if you have ever been subject to an insolvency arrangement.

After an IVA, a larger deposit (20%+) can significantly improve your mortgage options.

Why does a bigger deposit help?

A bigger deposit helps your chances of getting a mortgage as one of the key metrics lenders use is loan-to-value (LTV). Your LTV is the percentage of the property price you’re borrowing.

For example:

• 5% deposit = 95% LTV

• 20% deposit = 80% LTV

The lower the LTV, the lower the lender’s risk and the better your chances are of getting a mortgage at a competitive rate.

If you’ve had an IVA, a bigger deposit can:

• Increase the number of lenders willing to consider you

• Reduce your interest rate

• Offset some of the perceived credit risk

After an IVA, you may find that lenders prefer at least 15%-25% deposit, particularly if the IVA was recent.

MoneySuperMarket’s mortgage calculator can help you work out how much you might be able to borrow and what your payments will be.

How does mortgage deposit size affect interest rate options?

In general, a higher deposit will mean a lower interest rates on your mortgage. While a smaller deposit will mean a higher interest rate.

With an IVA on your record, this pricing difference can be more pronounced.

Does the source of my deposit matter?

Yes, the source of your deposit matters. Lenders will want to see:

• Clear proof of funds

• Bank statements showing build-up of savings

• Evidence if the deposit is gifted

Gifted deposits (for example, from parents) are often acceptable – but the lender will require a signed declaration confirming it’s a genuine gift, not a loan.

Which lenders accept applicants post-IVA?

Not all mortgage lenders treat IVAs the same way.

Many high‑street banks:

• Decline applications with recent insolvency

• Require the IVA to be fully completed

• Prefer it to be off your credit file

• May still ask whether you’ve ever been insolvent

• Require a big deposit

Specialist and adverse credit lenders are more flexible and may accept:

• Recent IVAs

• IVAs completed within the last few years

• Lower credit scores

• Higher LTVs

These lenders usually charge higher interest rates, but they can be a stepping stone until your credit improves.

How do I check mortgage eligibility without harming my credit score?

There are several ways to check mortgage eligibility without harming your credit score.

You should avoid making multiple full mortgage applications. Instead:

• Use eligibility checkers that perform a soft search

• Speak to a whole-of-market mortgage broker experienced in adverse credit cases

• Ask about lenders’ criteria before applying

How does an IVA affect mortgage rates?

Even after IVA completion, you may be offered higher mortgage interest rates compared with borrowers who’ve never had credit problems.

This is because lenders use risk-based pricing. An IVA suggests past repayment issues, so lenders may:

• Charge higher rates

• Offer fewer fixed‑rate options

• Limit the maximum LTV

• Enforce stricter affordability assessments

What can reduce the rate impact over time?

The effect of an IVA tends to reduce as it ages, especially if you:

• Maintain a spotless recent payment history

• Keep credit utilisation low

• Avoid missed payments

• Reduce other outstanding debts

• Provide a larger deposit

Once the IVA drops off your credit file and you’ve rebuilt your credit profile, you may be able to remortgage onto more competitive rates.

What credit score is needed after an IVA?

There’s no universal credit score that guarantees mortgage approval after an IVA. Each lender uses its own scoring model and affordability checks.

These will look at:

• Credit history

• Affordability

• Employment stability

• Existing commitments

What matters more than the credit score?

A good credit score will help your mortgage application, but strong recent behaviour matters too.

Lenders look at:

• Your recent payment history

• Whether you’ve had any missed payments since the IVA

• Your current debt levels

• Credit utilisation (ideally under 30%)

• Deposit size

• Employment stability

• Affordability based on income and outgoings

How can I rebuild my credit after an IVA?

Rebuilding your credit score after an IVA takes time, but steady progress can make a real difference.