Our advisors have a proven track record in finding the right lender for you. We know which lenders will consider your application based on your current situation. We also have strong relationships with their key account managers and the underwriters processing your application. These relationships will ensure your mortgage application gets pushed through successfully.
When it comes to getting a mortgage with an Individual Voluntary Arrangement (IVA), we know which lenders will consider your application and those who won’t.
An application with an IVA in place will be scrutinised much more than those without, so taking time to understand your circumstances and knowing how to present your application in a positive manner will give us the edge over mainstream advisors who may not have the experience in dealing with such applications.
Adverse Mortgage Advisors have the necessary experience and relationships with the lenders, understand the very specific criteria they look for, and know how to present your case in a way that will give your application the greatest chance of success.
All of our advisors know the lenders who will consider lending in circumstances where an IVA is causing an issue for a borrower. This is unlike high street banks, who are unlikely to lend to people with adverse credit, let alone an IVA that’s either currently still active or still showing on their file.
Remember: If your IVA is more than six years old from the date of registration, there is a good chance that it has stopped showing on your credit profile and may no longer hinder your mortgage application.
Getting a mortgage whilst you are currently in an IVA, or if it has been satisfied for less than 3 years, is heavily based on your affordability. This is the main requirement alongside having a large enough deposit to support your application and reduce the risk for the lender.
Lenders will want the IVA to be repaid. This doesn’t necessarily have to be prior to submitting your mortgage application, but your mortgage offer will certainly have conditions attached confirming that the IVA has been repaid before setting a completion date for your purchase. If you are applying for a remortgage, the lender will insist that the solicitor repays the IVA directly using the new mortgage funds.
Ultimately, the older the IVA satisfied date becomes, the better your chances of securing a mortgage with a lower interest rate or deposit requirement. However, lenders will also base their decision on your current financial circumstances. They will want to feel comfortable that your personal and financial circumstances have improved and that it’s unlikely you’ll need to enter into credit arrangements again in the future.
The age of the IVA will also impact the amount of deposit required. There are very few lenders that will consider a borrower whilst currently in an IVA, and each lender will have different criteria. However, as a guide, the following amounts are likely to be required to support your mortgage application:
If you have an active IVA, there is only a small number of lenders who would be willing to help. Therefore, it is important that you help the lender understand what happened, why you felt the need to enter into an IVA, and what steps you have taken to improve your circumstances to reduce their risk.
We assist many people who have been declined elsewhere before coming to us. Most of these declines were a result of wrong lender selection or supporting documents (such as payslips and bank statements) not being strong enough to support the application.
It is crucial that your application is presented in the best way possible because if your application is declined, lenders may ask that you wait up to 6 months before you can present a new application to them. It is for this reason that all our applications are pre-underwritten by us prior to submitting. We ensure that we fully understand your circumstances so there are no hidden surprises further down the line which could lead to your application being declined.
Our promise to you is that we will never submit a full application on your behalf unless we are supremely confident we are able to deliver success. We would always rather you delay applying for your mortgage if we feel that there is a weakness which could potentially lead to a decline, focusing on improving that area first.
Adverse Mortgage Advisors deal with these types of applications every day and can help guide you towards a lender who specialises in this type of mortgage. We understand what they are looking for in an application, as well as what they won’t tolerate.
Your credit file is unique, and a single financial hurdle rarely tells the whole story. Whether you are dealing with this specific issue or a combination of complex factors on your credit report, Adverse Mortgage Advisors has the expertise to find a path forward. Explore our comprehensive guide to bad credit mortgages to learn how we match applicants with specialist lenders who look past the computer-generated credit score and focus on your real-world circumstances.
If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.
An IVA, or Individual Voluntary Arrangement, is a formal deal between you and your creditors to pay off your debts over time.
You work with a specialist who figures out how much you can afford to pay each month. If creditors holding at least 75% of your debts agree to the plan, it becomes legally binding.
You make regular payments, usually over five to six years, and any remaining debt at the end is typically written off.
It's a way to avoid bankruptcy while still managing your debts, but it's important to get advice before committing to one as the effects this will have on your credit file is severe and it can impact your credit file for much longer than a Bankruptcy.
Getting a mortgage with an IVA (Individual Voluntary Arrangement) can be extremely challenging, but it's not impossible. Here are some steps you can take:
By following these steps and seeking professional advice, you can improve your chances of successfully obtaining a mortgage with an IVA on your credit record.
It is possible to apply for a mortgage whilst you are currently in an Individual Voluntary Arrangement (IVA). Some lenders will even allow them to continue to run alongside the mortgage under certain circumstances, as long as the conditions of the IVA continue to be met.
However, generally lenders will want the IVA to be settled prior to your new mortgage beginning, this can be for a few reasons.
Once you have been discharged from your IVA (it’s been repaid), you will find yourself in a better position with the number of lenders that will now consider your application.
However, you can still expect to pay higher interest rates whilst the IVA is still showing on your credit file & insolvency register.
The deposit you are likely to need with an IVA on your credit file is as follows:
An Individual Voluntary Arrangement (IVA) will impact on your ability to obtain a mortgage. An IVA is a formal agreement between an individual and their creditors and are arranged by IVA practitioners.
Having an IVA on your credit file will make it more difficult to be approved for a mortgage and will also result in higher interest rates and your application be underwritten with more stringent lending criteria. Lenders will assess your current financial situation to determine if you should be approved for a mortgage.
However, there is potential to get a mortgage with an IVA. Our team at Adverse Mortgage Advisors work closely with their clients and the lender to ensure the best possible application is submitted to the lender. It is this attention to detail that has enabled us to deliver many successful applications for our clients where they never believed it would be possible.
