How Long Does an IVA Stay on Your Credit File?
An Individual Voluntary Arrangement (IVA) is a formal debt solution that significantly impacts your credit file. This guide explains how long an IVA lasts, when it's removed, and what it means for getting a mortgage.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to pay back a portion of your debts over a fixed period, typically 5 or 6 years. At the end of the IVA, any remaining debt included in the arrangement is written off.
Key Facts About IVAs
- • Managed by a licensed Insolvency Practitioner
- • Typically lasts 5-6 years
- • You make one affordable monthly payment
- • Remaining debt is written off at completion
- • Creditors must accept the proposal (75% by value)
How Long Does an IVA Stay on Your Credit File?
6 Years from the Start Date
An IVA is recorded on your credit file for 6 years from the date it started. This is the same regardless of whether you complete the IVA successfully, fail it, or pay it off early.
Timeline Example
When is an IVA Removed?
Your IVA is automatically removed from your credit file exactly 6 years from the date it started. The key word here is started - not completed.
If your IVA lasts the typical 5 years, it will remain on your credit file for approximately 1 year after you complete it.
If your IVA lasts 6 years, it will drop off your credit file around the same time you complete it.
If you settle your IVA early (by paying a lump sum), the IVA still remains on your credit file until 6 years from the start date - not the settlement date.
How an IVA Affects Your Credit Score
An IVA has a significant negative impact on your credit score. Here's what to expect:
Life After an IVA: Rebuilding Your Finances
Completing an IVA is a significant achievement and marks the start of your financial recovery. Once you receive your completion certificate, you can focus on rebuilding:
Your options will continue to improve each year after IVA completion. For a quick eligibility check, see our guide on getting a mortgage after an IVA.
Mortgage Lenders That Accept IVA History
Many UK mortgage lenders work with borrowers who have IVA history. Your options depend on whether the IVA is active, recently completed, or dropped from your credit file:
A specialist mortgage broker understands which lenders are most suitable for your specific IVA situation. Visit our IVA mortgages guide for comprehensive information.
Getting a Mortgage With an IVA
Getting a mortgage during an active IVA is extremely difficult. Most lenders won't consider applications, and you'd need permission from your Insolvency Practitioner to take on new credit.
Once your IVA is complete but still showing on your credit file, some specialist lenders will consider applications. You'll typically need a larger deposit (20-25%+) and may face higher interest rates.
Once the IVA drops off your credit file (6 years from start), your options improve significantly. Many more lenders will consider your application, though some may still ask about historical insolvency.
How Long Does an IVA Stay on Your Record?
Whether you call it your credit record, credit report, or credit file, an IVA remains visible for exactly 6 years from the date it was registered. This is a UK-wide standard applied by all three credit reference agencies: Experian, Equifax, and TransUnion. Understanding this timeline is crucial when planning major financial decisions like applying for a mortgage.
Many people wonder how long an IVA stays on their record because they're planning ahead for homeownership. The good news is that your mortgage options improve progressively as time passes. While getting a mortgage during an active IVA is challenging, specialist lenders become more willing to consider your application once the IVA is completed. For detailed guidance on your options, visit our IVA mortgages page.
If you're unsure whether your IVA affects your mortgage eligibility, our mortgage after IVA guide provides a quick overview of what lenders look for and when your options expand.
What Does an IVA Look Like on Your Credit Report?
When an IVA appears on your credit file, it's recorded as a formal insolvency arrangement. Lenders reviewing your credit report will see clear details about the IVA, including when it started, its current status, and whether it's been successfully completed. This information helps mortgage lenders assess your financial history and current circumstances.
The IVA entry on your credit report includes several key pieces of information that lenders consider when making decisions. Understanding what appears on your credit file helps you prepare for mortgage applications and have informed discussions with bad credit mortgage specialists.
Information Shown on Your Credit Report
- • IVA registration date and expected end date
- • Current status (active, completed, or failed)
- • Name of your Insolvency Practitioner
- • Total debt included in the arrangement
- • Monthly payment amount agreed
It's important to check your credit file regularly to ensure the information is accurate. If you spot any errors, you can dispute them with the credit reference agency. Once your IVA is completed, the status should be updated to reflect this. For specialist mortgage advice, explore our IVA mortgage options.
IVA Impact on Credit Score: What You Need to Know
An IVA has a substantial impact on your credit score, but understanding exactly how it affects your score can help you plan for financial recovery. When you enter an IVA, your credit score will drop significantly – often by 200-300 points or more depending on your starting position. This reflects the serious nature of the arrangement and is designed to alert potential lenders to your financial history.
The good news is that your credit score isn't permanently damaged. Many UK borrowers successfully rebuild their credit and secure mortgages after completing an IVA. The key factors affecting your score recovery include:
If you're concerned about how your IVA affects your mortgage prospects, don't wait until the 6 years is up. Many specialist bad credit mortgage lenders consider applications from borrowers with completed IVAs, and our mortgage after IVA guide explains your options at each stage.
When Will Your IVA Be Removed from Your Credit Report?
Your IVA will be automatically removed from your credit report exactly 6 years from the date it was registered – not the date you completed it. This is a common source of confusion, so let's clarify with practical examples for UK borrowers.
For most people with a standard 5-year IVA, this means the entry remains visible for approximately one year after completing all payments. If you settled your IVA early with a lump sum payment, the removal date doesn't change – it still drops off 6 years from the original start date.
Removal Timeline Examples
As the removal date approaches, it's worth checking your credit file to ensure the IVA is removed on time. Occasionally, administrative delays can mean entries remain slightly longer than expected. If this happens, contact the credit reference agency directly to request correction.
Frequently Asked Questions
An IVA stays on your credit file for 6 years from the start date of the IVA. This is the case whether the IVA is completed successfully, fails, or you pay it off early.
An IVA is removed exactly 6 years from the date it started. If your IVA lasts 5 years (typical), it will be removed from your credit file 1 year after completion.
Yes, an IVA significantly impacts your credit score. It's one of the most serious entries and will make getting credit difficult during the IVA and for some time after.
No, you cannot have an IVA removed from your credit file early, even if you complete it ahead of schedule or pay it off in full. The 6-year period runs from the start date.
When you complete your IVA, you receive a completion certificate. The IVA will be marked as 'completed' on your credit file but remains visible until the 6-year mark from the start date.
Getting a mortgage during an active IVA is very difficult. Most lenders require the IVA to be completed, and you'll typically need to wait 1-3 years after completion for more options.
Yes, you can get a mortgage after an IVA. Your options improve significantly after the IVA drops off your credit file (6 years from start), but some specialist lenders consider applications earlier.
An IVA is a formal agreement to pay back a portion of your debts over typically 5 years. Bankruptcy is a court order that writes off most debts but has more severe consequences for assets and credit.
Had an IVA and Need a Mortgage?
Whether your IVA is completed or still showing on your credit file, our specialist mortgage advisers can help you understand your options and find lenders who may consider your application.