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Mortgage After IVA
Getting a Mortgage After IVA? We’ve Got The Answers
Mortgage After IVA
When you’re looking for a competitively priced, low deposit mortgage, having bad credit of any kind can cause complications. Whilst lenders were once more relaxed about lending to potential homeowners, since the days of the financial crash, banks and building societies have understandably become more cautious. This has made it increasingly difficult for borrowers to find an affordable mortgage or remortgage after IVA.
The good news is that here at Amber Mortgage Solutions our team of bad credit mortgage experts have access to the whole market, including ‘IVA friendly’ lenders, helping to find you exclusive deals to suit your unique circumstances.
What Is An IVA?
An IVA – or Individual Voluntary Arrangement – is a legally binding agreement between an individual and their creditors. This is recorded on the insolvency register and will be set up by an insolvency practitioner, who should be a qualified solicitor or accountant approved by the court.
The role of the insolvency practitioner is to examine your finances and help you to come up with a payment plan that is affordable to you, and acceptable to your creditors.
If the proposal is accepted by your creditors, then all charges and interest will be frozen and the creditors will be unable to demand any further payments from you. You are then required to make the agreed monthly payments to the insolvency practitioner, who will then forward the correct amount of money to each creditor. Insolvency practitioners will also deduct their own fee from this amount.
Once the agreed period of time that your IVA was set up for has passed – providing you have kept up to date with your payments – any unpaid debts should be written off and your IVA record will be removed from the Insolvency Register.
Here’s what our client’s have to say!
Can I Get a Mortgage After An IVA?
Whilst having an IVA can impact your chances of finding a competitive mortgage deal and cost you more than if you’d had no bad credit on your record, it is still possible to get a mortgage with an IVA.
The majority of high street lenders will decline an application with an active IVA on the person’s credit file. Fortunately, there are specialist lenders out there who will be happy to consider applications for a mortgage with an IVA and help secure a favourable mortgage deal. However, it is important to remember that if you have an existing IVA there is a chance that you’ll be required to pay higher interest rates or put down a larger deposit.
Worried about getting a mortgage after IVA finished? Our dedicated team are experienced in helping borrowers with bad credit gain access to specialist lenders willing to consider your application.
How Long Will An IVA Stay On My Credit Record
Typically, an IVA will show on your credit report for six years from the first day of the IVA. After six years, if you have stuck to your agreed payments and have no further defaults, then your credit file will be clean.
Despite this, there are some high street lenders who may see your clean credit record and still ask whether you have ever had to enter into any arrangements such as IVAs, which you will have to answer honestly. If the answer is yes, then some lenders may still decline your application.
Once you have a clean credit file, you will still have to rebuild your credit history from scratch. Whilst there will no longer be any incidents of bad credit on your file making you appear a risk to lenders, you will have no payment history to show that you’re a good risk to take either. To repair your credit score, there are a number of things you can do, but a good place to start would be to get a copy of your credit report.
How To Check Your Credit Report
After six years, as long as you have picked up no further adverse credit, you should now have a clean credit record. However, it is important to check that your credit file accurately reflects this and that all information is correct.
To do this you can obtain a copy of your credit report which can be done for free, from a wide range of trusted online providers such as Experian, Equifax and CallCredit.
Getting a Mortgage After Having An IVA
Obtaining a mortgage after IVA can be tricky, but it is possible.
For expert mortgage after IVA advice you can rely on our dedicated team to give you access to specialist lenders across the UK to help find you the best deals on the market.
No matter what your credit issues may be or where you are on your property ownership journey, our friendly advisors can assist you every step of the way, giving you the best possible chance of securing a competitive bad credit mortgage after IVA completion.