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 set period (usually 5-6 years). It's managed by an Insolvency Practitioner (IP) and provides protection from creditor action while you make agreed payments.

An IVA stays on your credit file for 6 years from the date it started - not the date it completes. This is an important distinction because most IVAs last 5-6 years. If your IVA runs for the typical 5 years, it will remain visible on your credit file for approximately 1 year after completion.

Even if you settle your IVA early with a lump sum payment, the 6-year clock runs from the original start date. After 6 years, the IVA is automatically removed by all three UK credit reference agencies.

For detailed timelines and what this means for your credit, see our guide on how long an IVA stays on your credit file.

An IVA has a substantial negative impact on your credit score - it's one of the most serious entries that can appear on your credit file. During the IVA, your credit score will be severely affected and most credit applications will be declined.

After your IVA completes, your credit score will begin to recover, especially as you rebuild credit responsibly. Once the IVA drops off your credit file (6 years from start), you can expect a significant improvement in your score.

Despite the credit score impact, many people with IVAs successfully get mortgages by working with specialist lenders who assess applications individually rather than relying solely on credit scores.

Completing an IVA is a significant financial milestone. Once you receive your completion certificate, you're free from the arrangement and can begin rebuilding your financial life. Here's what to focus on:

Have questions about your mortgage options after IVA completion? See our quick answer on getting a mortgage after an IVA.

Yes, getting a mortgage with an IVA is possible, though it requires careful planning and specialist advice. Whether you're in an active IVA or have recently completed one, there are lenders in the UK market who will consider your application. The key is understanding what lenders look for and positioning your application correctly.

When applying for a mortgage with an IVA, lenders will assess several factors beyond just the IVA itself. They'll consider how long you've been in the arrangement, whether your payments are up to date, and your overall financial stability. A specialist broker can identify which lenders are most likely to approve your application based on your specific circumstances.

What Lenders Consider for IVA Mortgages

• Time since IVA started or completed - more time improves options
• Payment history during the IVA - consistent payments are essential
• Deposit size - larger deposits significantly improve approval chances
• Current income stability and affordability

For a quick overview of your eligibility, see our guide to mortgages after an IVA. If you have other credit issues alongside your IVA, our bad credit mortgages page covers additional options.

Getting a mortgage after your IVA has completed is considerably easier than during an active arrangement. Once you receive your completion certificate, you're no longer bound by the IVA terms, and the range of lenders willing to consider your application expands significantly. Many people find this is the optimal time to start their property search.

The timing of your application after IVA completion matters. In the first year post-completion, you'll typically need specialist lenders and a deposit of around 15-20%. As each year passes, your options improve - by two to three years after completion, you may access near-mainstream rates with competitive terms. The IVA remains on your credit file for six years from its start date, not the completion date, so it may drop off your file within a year of completing if your arrangement lasted the typical five years.

Steps to Take After IVA Completion

• Obtain and keep your IVA completion certificate safe
• Check your credit file shows the IVA as satisfied
• Begin rebuilding credit with responsible borrowing
• Save for the largest deposit you can manage

Learn more about the timeline in our comprehensive guide on how long an IVA stays on your credit file. For answers to common questions, visit our mortgage after IVA FAQ.

If you're a homeowner who has entered an IVA, you may be wondering about your remortgage options. Remortgaging with an active IVA is possible but requires permission from your Insolvency Practitioner (IP) and comes with certain restrictions. Many people remortgage to release equity as part of their IVA settlement, while others may need to remortgage when their current fixed rate ends.

During an active IVA, remortgaging typically requires a substantial amount of equity in your property and will be limited to specialist lenders. Your IP must approve the remortgage, and any equity released may need to contribute towards your IVA payments. After your IVA completes, remortgaging becomes more straightforward as you're no longer bound by IP approval requirements and more lenders become available.

Key Considerations for IVA Remortgages

• IP permission is mandatory during an active IVA
• Equity release may be required to contribute to IVA payments
• Rates will be higher than mainstream during an active IVA
• Options improve significantly after IVA completion

If you have other credit issues affecting your remortgage, explore our bad credit mortgage options. For information on the credit file implications, see our IVA credit file guide.

Mortgage rates for borrowers with an IVA will typically be higher than mainstream rates, reflecting the additional risk lenders take when lending to someone with adverse credit history. However, the rates you're offered will depend on several factors, including the stage of your IVA, your deposit size, and how much time has passed since completion.

During an active IVA, you can expect rates to be between 1% and 3% above standard rates. As time passes after completion and you rebuild your credit profile, the gap between your rates and mainstream rates narrows. By three years post-completion with a clean credit record since, many borrowers find they can access rates that are only marginally higher than those offered to borrowers with no adverse history.

Factors That Affect Your IVA Mortgage Rate

• Deposit size - larger deposits typically mean better rates
• Time since IVA completion - rates improve year on year
• Credit behaviour since the IVA - clean credit is essential
• Property type and location can influence available products

For a personalised rate assessment, our specialist advisers can review your circumstances and identify the most competitive options. Read more about improving your position in our mortgage after IVA guide or explore wider options on our bad credit mortgages page.