If you have a IVA, you may struggle to get a mortgage from high street lenders. However we do have a large panel of specialist mortgage lenders that may be able to help.
Our team of experienced mortgage advisers can help clients that have bad credit history such as missed payments, defaults or Individual Voluntary Arrangements.
What is an IVA?
An IVA or what is known as: Individual Voluntary Arrangement.
An IVA is a legally binding contract/agreement between you and your creditors. This is a formal agreement where you will have agreed a set repayment to pay back your debts over a certain period of time.
IVAs are usually arranged by insolvency practitioners. The IVA must then be approved by a court and then recorded on the Insolvency Register, this will show on your credit report, as you having entered into an IVA for any creditors, that you are looking to pay back, through this arrangement.
An insolvency practitioner will arrange the IVA by assessing your financial situation, they will produce a payment plan for you, that suits your needs and your affordability, They will also consider your creditors, the amount owing to them and what they're hoping to achieve from your IVA, it may be that they agree a certain figure (full & final settlement figure) this may be a reduced amount, once this is paid off, officially, they will not be able to contact or harass you for payment, and this in turn will greatly reduce the stress that goes along with having outstanding debts and subsequently resulted in an IVA, this arrangement usually lasts around 5 years, they may agree a shorter term, but this is all subject to your particular circumstances, also for your benefit the interest on the debt will be frozen, so you will not accrue any further charges. The agreed figure for the debt, will then be paid on a monthly basis to the insolvency practitioner, who will pay your creditors, whilst deducting their own fees, they do charge a fee for this service there are various agencies that may not charge a fee.
If there is any remaining debt, once the period of the IVA has ended and you have kept to all parts of the agreement, it is usually then written off. At the end of the IVA, you will no longer owe your creditors any money. The record of your IVA should then be officially removed from the Insolvency Register, you will receive notification of this from them.
It is imperative that you keep to the agreement of the IVA as you may find the mortgage brokers specialist advisor, may need to see a record of the payments over a period of time.
Can you get a mortgage with an IVA
The simple answer is yes, it is possible to get a mortgage after an IVA, and even if the IVA is still active, you may not be eligible for the lowest mortgage rates on the market, but there are specialist lenders that may still be able to offer some competitive rates, as they may have specialist products that may meet your needs.
Can I get a mortgage with an IVA
Getting a mortgage after an IVA can be straightforward, but please try to avoid going straight to high street lenders, this can result in you being declined, The main issue being that your IVA will show up on your credit file and will do for 6 years after the IVA has been registered. Try and obtain a copy of your credit file, you can obtain this through various agencies, the main ones being Equifax and Experian, and also another one called Check My File, they are quite comprehensive and should provide a detailed copy of your credit file, obtaining this yourself will not impact on your credit file, this is one of the main areas that an IVA mortgage lender and specialist mortgage advisor at The Moneyhub Limited will assess during your mortgage application. Specialist Mortgage lenders will also be able to see how many applications that you have made, if you make too many application this can affect your mortgage options.
Mortgages after an IVA
Most high street lenders will consider you to be high risk due to your IVA, and even after your IVA has finished. Having an IVA can heavily influence a lender’s decision on your mortgage being approved, but at The Moneyhub Limited, we have the relevant expertise, our advisors have been sourcing these specialist mortgage products for years, for our specific client's, they have many years experience between them, and will source the best product in the current mortgage market, and will endeavour to get you the best product, to fit your individual circumstances.
IVA Mortgage Advisor
In order to obtain a mortgage after an IVA, your specialist Mortgage Advisor may have to seek a specialist lender. Specialist lenders can offer mortgages to borrowers who are in an active IVA or have had an IVA in the past. Although you may be approved a mortgage, you may have to pay higher interest rates as well as having to pay a larger deposit dependent on the product chosen, but this will be the best suitable product to suits your needs.
Every mortgage application varies, therefore lenders assess each case individually, so there isn't one correct answer for everyone. You may be offered some great rates without needing a large deposit. Mortgage approval depends on your financial circumstances and what you hope to gain in terms of your mortgage. If you’re still unsure, you can ask our expert specialist mortgage advisors at The Moneyhub Limited.
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