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IVA Mortgage
If you are considering an IVA Mortgage please visit our mortgage 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.
To talk to our approved debt specialists who are fully licensed Insolvency Practioners (IP’s) and offer a full range of solutions please telephone 0800 014 7863 or take the 30 second debt test by clicking the link on the left. If you qualify for further debt help and assistance our approved adviser will call you back and explain your options to finally becoming debt free. There is no cost for this call and no obligation.
DIY Debt Solutions
Ideally suited to debts of less than £5k with some disposable income available. Learn how to consolidate your situation and reduce your monthly payments by learning to negotiate with your creditors directly.
DIY Debt Solutions Debt Management Plan
Designed for debts of up to £15k where creditor pressure is becoming too much to handle and you may have failed to agree to an overall acceptable monthly payment with your creditors directly.IVA
Minimum total Debt of £15k to qualify for an IVA. Typically you can write off up to 75% of your debts and repay the balance over 5 years. This is a formal arrangement and failure to maintain it can have serious implications
Bankruptcy
If you have been refused an IVA or simply do not have any disposable income to come to an arrangement with your creditors Bankruptcy may well be your best option but professional help and advice is strongly recommended before entering into any formal arrangements.