Completed an IVA and want to buy a home? Here's your realistic timeline and options.
An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors to repay a portion of your debts over a set period, usually five or six years. It's an alternative to bankruptcy and is managed by a licensed insolvency practitioner.
IVAs are recorded on the Insolvency Register and appear on your credit file for six years from the date the arrangement was approved. During the IVA, you'll have strict spending restrictions and won't be able to take on new credit, including a mortgage.
In almost all cases, no. The terms of your IVA typically prevent you from obtaining credit of more than £500 without your insolvency practitioner's permission. Even if you could get permission, virtually no mortgage lender would approve an application while an IVA is active.
The practical reality is that you need to wait until your IVA is completed (or terminated) and you've had time to rebuild your credit before applying for a mortgage.
💡 Even after your IVA drops off your credit file, some mortgage application forms ask if you've ever had an IVA. Always answer honestly — lying on a mortgage application is fraud.
Once your IVA is completed, it stays on your credit file for six years from the start date (not the completion date). If your IVA lasted five years and started in 2020, it would drop off your credit file in 2026.
Most specialist lenders require at least one year after completion before they'll consider a mortgage application. Some prefer two or three years. The longer you wait, the more options you'll have and the better rates you'll get.
After an IVA, expect to need a deposit of at least 15–20% of the property value. Some lenders may accept 10% if your IVA was completed several years ago and your credit has since recovered well.
Building a deposit after an IVA takes discipline, but it's achievable. Setting up a dedicated savings account and making regular monthly contributions demonstrates to lenders that you can manage money responsibly.
⚠️ Taking on credit during an active IVA without permission from your insolvency practitioner could cause your IVA to fail, potentially leading to bankruptcy.
High-street banks rarely lend to applicants with a recent IVA history. However, several specialist lenders focus on this market, including Pepper Money, Kensington Mortgages, and Together Money.
These lenders charge higher rates — typically 2–4% above mainstream rates — but they provide a route to homeownership. After two or three years of on-time mortgage payments, you may be able to remortgage to a cheaper deal as your credit profile improves.
Start rebuilding your credit as soon as your IVA completes:
Navigating the mortgage market after an IVA requires expert guidance. A specialist broker understands which lenders are most receptive, what documentation you'll need, and how to present your application to maximise approval chances.
Nesto connects you with FCA-regulated brokers who specialise in post-IVA mortgages. The service is completely free and takes under two minutes. Get matched with a specialist broker now.
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