An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to pay back debts over a fixed period, usually 5 years. Bankruptcy is a legal process when you cannot pay your debts. Both are serious, but neither permanently prevents you from getting a mortgage. Once the IVA is completed or enough time has passed since discharge from bankruptcy, lenders will consider you.
Specialist lenders recognise that people can recover financially. The key factors they assess are: how long since completion/discharge, whether you’ve maintained a clean payment record since, your deposit size, and your current income stability.
You can typically apply for a mortgage once your IVA is completed (usually after 5-6 years). Some lenders may consider you sooner if you have a strong financial recovery story.
Post-IVA/bankruptcy, maintaining a clean payment history strengthens your case. On-time payments on credit cards, loans, or utilities show you’re financially responsible now.
You may need a larger deposit (15-20%+) to offset the perceived risk. A substantial deposit shows genuine commitment and reduces lender risk.
Mainstream banks rarely offer mortgages after insolvency. Specialist lenders understand recovery and have flexible criteria tailored to your situation.
Very rarely. Most lenders wait until the IVA is completed. Once completed, you become significantly more attractive to specialist lenders.
Bankruptcy remains on your credit file for 6 years, but you may apply within 1-3 years if you’ve shown strong financial recovery.
Yes, it will impact approval, but specialist lenders understand these situations and assess your current position, not just your past.
Interest rates will likely be higher than standard mortgages, reflecting the perceived risk. The exact rate depends on your specific circumstances.