Checked by Connor Fitzgerald, Founding Director
If you are currently in an Individual Voluntary Arrangement (IVA), or have recently completed one, you might be wondering whether owning a home is still within reach. The short answer is: yes, it is possible to get a mortgage, but the journey looks a little different.
This guide is designed to help you understand exactly how an IVA affects your mortgage prospects, what your options are right now, and how to put yourself in the strongest possible position when the time comes to apply.
An Individual Voluntary Arrangement is a legally binding agreement between you and your creditors that allows you to repay your unsecured debts through manageable monthly payments, typically over five to six years. At the end of the arrangement, any remaining debt covered by the IVA is legally written off.
IVAs are set up and managed by a licensed Insolvency Practitioner (IP), who acts as an intermediary between you and the people you owe money to. To be approved, at least 75% of your creditors (by value of debt) must agree to the terms.
IVAs have become one of the most widely used debt solutions in England and Wales. According to the UK Government’s Insolvency Service, 71,855 of them were registered in England and Wales in 2025 (rising from 67,089 in 2024), accounting for 57% of all individual insolvencies that year.
In other words, if you are in one there’s no need to feel ashamed as you are far from alone.
One of the most important things to understand is how an IVA interacts with your credit history because this directly shapes your ability to get a mortgage.
When one is approved, it is registered on:
An IVA stays on your credit file for six years from the date it was approved, regardless of whether you complete it in five years or pay it off early. After five years, it will be marked as “complete” rather than “active,” but it will remain visible to lenders for that additional year.
If you’d like to check your credit report for free, you can do so by clicking here.
Because the IVA signals to mortgage lenders that you have previously struggled with debt, most mainstream lenders will either decline your application outright or consider you a high-risk borrower. This means you are unlikely to qualify for the most competitive mortgage rates during this period.
There is also an important practical restriction to be aware of: during an active IVA, you are generally only permitted to take on new credit of up to £500 without written permission from your Insolvency Practitioner. Applying for a mortgage above this threshold (which, of course, all mortgages are) requires your IP’s approval.
Being in an active IVA can make the path to getting a mortgage feel especially restrictive. However, despite what many people say, it is still possible to secure one; the journey just looks a little different.
Most high-street banks and building societies will not lend to someone with an active IVA on their credit file. However, specialist lenders do exist who are specifically experienced in working with applicants who have adverse credit histories, including active IVAs.
If you want to pursue a mortgage while your IVA is still active, here is what you will typically need:
Before approaching any lender, you must inform your IP. They will assess whether taking on a mortgage is appropriate given your financial circumstances and whether it will affect your IVA payments.
It’s worth noting that if you obtain a mortgage during your IVA, your IP may adjust your monthly payments to reflect your new financial obligations. Discuss this with your IP before proceeding.
Lenders who consider applicants with an IVA will typically require a significantly higher deposit to offset the perceived risk.
This can prove to be one of the biggest hurdles as your insolvency practitioner will usually expect most of your available money and surplus income (after essential living costs, as defined in your agreement) to go towards repaying your debts. That leaves little, if anything, available to set aside for a deposit.
A strong, consistent employment record and demonstrable income will help reassure lenders that you can meet your repayments alongside your IVA commitments.
A broker with extensive experience in bad credit or adverse credit mortgages will have access to lenders that the general public cannot easily reach. They can match you with the right product and guide your application in a way that maximises your chances of success.
At The Levels Financial, we are exactly that type of broker. So, if you’re in an active IVA and looking to buy please get in contact today to book your free initial consultation.
Once your IVA has been completed and you have received your completion certificate, there are no legal restrictions stopping you from applying for a mortgage.
However, as noted above, the IVA remains on your credit file for six years from the start date, so if it ran for five years, it will still be visible for one more year after it ends.
Overall, high street banks remain very unlikely to offer you a mortgage while your IVA is still on your credit report. However, there are several specialist mortgage lenders in the UK who will offer you a mortgage.
Once the six-year mark passes and it drops off your credit file completely, lenders will no longer be able to see it during a standard credit check. This is when your mortgage options open up considerably.
That said, it is important to be aware that mortgage application forms occasionally ask whether you have ever had an IVA, even after it has been removed from your credit file. You must answer honestly as failing to disclose this when asked directly is considered fraud and could result in your application being rejected, or worse, your mortgage being recalled.
When it comes to timings, there is no single answer that applies to everyone, but here’s a general idea of what we would recommend.
If you already own a home and are considering entering an IVA, you may be relieved to know that your mortgage is not included. Your mortgage payments are treated as an essential living expense and are factored into your monthly budget when your IP calculates how much you can afford to pay.
In short, you can keep your home and continue paying your mortgage, providing you keep up with both your mortgage payments and your IVA contributions. In fact, one of the key advantages of an IVA over bankruptcy is that it is specifically designed to protect your home.
However, there is one important consideration for homeowners: in year five of your IVA (or year four if it runs for five years), if you own a property and have equity in it, you may have to try to remortgage your house or get a secured loan to pay some of the equity into your IVA.
If the existing mortgage (including any secured loans) is larger than 85% of the current value then there isn’t enough equity to remortgage.
There’s also something called a de minimis clause. This is essentially a common-sense rule: if the amount you could release through remortgaging would be less than £5,000, it’s not worth pursuing. In that case, you wouldn’t need to remortgage at all.
An IVA can feel like a closed door when it comes to getting a mortgage, but it really does not have to be.
Thousands of people complete IVAs every year and go on to become homeowners. The key is understanding the timelines involved, knowing what lenders are looking for, and taking deliberate, consistent steps to rebuild your financial profile. Plus, some people even become homeowners while still in an active IVA.
If you are unsure where to start, you can give us a call on 01458 772 040 or send an email to admin@thelevelsfinancial.co.uk.
