Can I Get a Mortgage with an IVA?

Can I Get a Mortgage with an IVA?

If you have an IVA (Individual Voluntary Arrangement) in place, or a poor credit history, you may be wondering how to go about getting a mortgage. Don’t worry. We help lots of people every month that are either currently in an IVA or have an IVA still showing on their credit file.

By considering some key points you’ll secure the best mortgage for your individual situation.

But perhaps the most important point is getting the right advice from the start.

A good mortgage broker (by this we mean a mortgage broker who specialises in bad credit mortgages, not just a big high-street name) will understand the exact requirements of the lender they are applying to and more importantly how to present your application in order to get the result you’re looking for. The latter is key.

We understand in great detail the requirements of each lender we work with and also have great relationships with these lenders. We can even discuss your case with their underwriters prior to submitting your application, for added reassurance. This is the key to delivering a successful application. It’s a lot more involved than just filling out a form.

With the right advice you can get a mortgage while having an IVA or a history of poor credit.

It’s also important to have an honest conversation about your circumstances and being clear on what they need from you. This is where a good broker’s advice is invaluable.

Things to Consider

If you have an IVA, lenders may consider whether the arrangement is likely to be completed and any other longer-term effects. The terms of your current IVA may mean you are ineligible to apply for any credit which includes mortgages.

Make sure your credit report is up to date and accurate and contact the relevant agencies as soon as possible if you spot any errors. It all adds up.

The current cost of living crisis has created obstacles for everyone. Applying for a mortgage with an IVA or poor credit might seem like a challenge, but we can really help. We understand the requirements for a successful mortgage application. You will need lenders who offer specialist IVA mortgages as this will provide flexibility and can affect the interest rate you pay.

  • Speak to a financial adviser with the proper experience in dealing with credit issues as they will be able to assess your situation and advise on suitable providers.
  • Always ensure that the information you provide is accurate – otherwise this could affect the outcome of your application.
  • Your application will be manually underwritten which although will take a little longer than high street lenders, this should be viewed as a positive thing as it gives us the opportunity to explain your situation and why we feel they should lend to you. Rather than a computer says no because your credit score is not high enough.
  • The lender will want an understanding of the circumstances that led to you having to take the decision of entering into an IVA. For example was it a life event such as a relationship breakdown or a redundancy. But more importantly what changes have happened to give the lender the extra reassurance that you are no longer high risk

Getting Your Mortgage

The current cost of living issues have created many financial challenges. If you have an IVA or poor credit history getting a mortgage is still a reality.

A few steps, like considering how much you can afford in terms of monthly payments and ensure that your other financial commitments don’t put too much strain on your budget can be really helpful. After all what is the point in becoming a slave to your home. Be prepared to prove your financial situation and show lenders that you can manage a mortgage successfully.

Not all lenders will offer mortgages to people with poor credit histories or those with IVAs in place. Therefore, it is essential to get specialist advice whether you are looking to purchase your first home, buy your next home or even remortgage your current home. 

Check Your Credit Report

Check Your Credit Report

Regularly checking your credit report can help too. You can access your credit report from companies such as Checkmyfile which is our preferred credit agency as we find is the most reliable. You can try Checkmyfile for free for 30 days with no obligation.

Experian or Equifax also provide detailed reports based on your financial history and current status. This will give you greater insight into what lenders will see when they assess your application. These will also help you look at ways of improving your credit score, which can help when choosing a mortgage product.

Fees and Charges                                               

Adverse Mortgage Advisors help you understand exactly how much interest you’ll be paying over the course of the loan term as well as any additional fees such as early repayment charges which could incur if you choose to pay off your mortgage earlier than expected.

Final Thoughts

You can make a home a reality and get a mortgage with an IVA in place or a poor credit history. Taking specialist advice means you can ensure that you apply to the right lender for your circumstances which means also getting the best mortgage possible. Look for a broker who has good relationships with IVA mortgage lenders, like we do. It’s the understanding of their requirements that can be the difference between success and failure.

With good advice, careful financial planning and consideration of all factors involved in applying for a mortgage, you can secure yourself the home of your dreams.

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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.

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