Are you in an IVA, or have you ever been in an IVA and are now looking for a mortgage? If you have answered yes to either of those points, then The Money Hub are here to help you. As expert IVA mortgage brokers, we help clients that are currently in or have previously been in an IVA to access an exclusive range of products from specialist lenders.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal and legally-binding agreement between you and your creditors to pay back you debts over a 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 theyre hoping to achieve from your IVA. It may be that they agree a certain figure – full and 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 and 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, and 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.
What is an IVA mortgage?
The term ‘IVA mortgage’ is used to refer to a mortgage that is being applied for while an IVA shows on your credit report.
How do I get an IVA mortgage?
There are many factors that mortgage lenders will consider when looking at an application for an IVA mortgage, which includes your credit score and credit history. At The Money Hub, we can look into helping you apply for a mortgage with a specialised IVA mortgage provider. So don’t worry if you do have an IVA, because we will take a look into you credit score, history and records to try and help you.
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.
If I have an IVA, will that affect me getting a mortgage?
Getting a mortgage after an IVA can be straightforward, but please try to avoid going straight to high street lenders as this can result in you being declined. The main issue being that your IVA will show up on your credit file and will do so 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, with 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 Money Hub 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.
Specialist lenders will try to adjust the specifics of your deal to present the right level of risk to reward for them, and they will also use variables to help create an offer to suit you both, such as interest rates and the size of the deposit.
Mortgages after an IVA
Most high street lenders will consider you to be high risk due to your IVA, and even class you as high risk after your IVA has finished. Having an IVA can heavily influence a lender’s decision on your mortgage being approved, but at The Money Hub Limited, we have the relevant expertise and experienced advisors who have been sourcing this type of specialist mortgage products for years for a range of different clients. Our specialist advisors have many years experience between them, and will source the best product in the current mortgage market. We will endeavour to get you the best product, to fit your individual circumstances.
Get in touch with professional IVA mortgage lenders today
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 isnt 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.
To find out more on IVA mortgages and how we can help you, please get in touch with The Money Hub today.
There are lenders that provide IVA remortgages to clients and these lenders are accessible through a mortgage broker. Your payment conduct on the IVA will need to be good and you will need to have around 30% equity within the property.