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IVA Mortgage

If you are considering an IVA Mortgage please visit our mortgages section for more information.

An IVA mortgage is for people who have used an individual voluntary arrangment to clear debt, or who are still contributing to an IVA program.

Also known as a non-status mortgages, bad credit mortgage, adverse credit mortgage or sub-prime mortgage – an IVA mortgage provides a way for people with poor credit to get a home loan.

The mortgage market has taken a serious blow over the past year but an IVA mortgage is anything but extinct. If you are considering IVA as a way to reduce debt, it is still possible to secure a home loan through an IVA mortgage. An IVA mortgage is a specialist mortgage for ‘high risk’ consumers. There are, however, some important points to consider.

The type of IVA mortgage you are eligible for and on what terms the loan will be offered, including amount and interest rates, will be determined by your personal circumstances. Such as:

  • When your IVA was completed (if now satisfied)
  • How much deposit you have available
  • If you adhered to the terms laid out by your IVA
  • If you are interested in re-mortgaging or you would like a better deal under a new mortgage
  • Any county court judgments served against you

Ultimately, the decision will depend on the IVA mortgage providers because each lender will have their own set of criteria. With this in mind, it is worthwhile shopping around for the best IVA mortgage and don’t be deterred if one lender refuses your application.

Furthermore, an IVA mortgage will not be available at the same interest rate you paid for any previous mortgage. You can expect the new interest rate will reflect your ‘high risk’ status and will therefore be considerably higher – by a couple of percentage points. It is not all bad news, however, because your lender will probably review you situation once you have met a required amount of timely mortgage payments.

As increasing numbers of people are applying for IVAs as a way to reduce and clear debt, IVA mortgages have come out of the shadows to become a popular mortgage package.

An IVA allows you to be debt free in five years. Unfortunately this freedom comes at a price as the IVA will be recorded on your credit file for six years making it difficult to get a mainstream, lower interest, mortgage. For more information on IVAs, click here. Alternatively, if you would like to know more about your credit file, including ways to improve your credit score, click here.

We also have information on Debt Relief Orders for people who cannot clear debt through conventional means, such as Bankruptcy, DMPs or IVAs.