If you have an insolvency agreement in the form of an IVA, you’ll find it harder to get a mortgage. If you’re eligible for any deals, there will be fewer options, and you’ll likely face higher interest rates and need a bigger deposit.
An individual voluntary arrangement (IVA) is a formal, legally binding agreement to repay some or all of your debts over a specific period, typically 5 years. It’s set up and managed by an insolvency practitioner. It’s not impossible to get a mortgage during this period but it’ll be easier once the IVA is satisfied.
Find out about this type of bad credit mortgage and why timing is important.
Your home may be repossessed if you do not keep up repayments on your mortgage. This article is for general information only and isn't personal financial advice.
Most lenders will decline an application for a mortgage if you’re still in an IVA: your available income is already committed to paying off your existing debts. ou’d also usually need permission from your insolvency practitioner to take on further borrowing, such as a mortgage. The amount you can borrow without permission will depend on the terms of your IVA, so check your agreement or speak to your insolvency practitioner before taking on new credit..
A few specialist lenders may consider you, but because you’re viewed as a risky borrower, rates are typically higher and you’d need a large deposit (which is also harder to save up for if your income is committed to paying off existing debts). Find out about how lenders look at your credit score.
General guide only — lender criteria vary. Correct as of Oct 2026.
As time passes, getting a mortgage becomes easier. Your IVA stays on your credit record for 6 years from the start date and then it drops off. Many lenders prefer the IVA to have been satisfied for a period before they’re willing to offer you a mortgage. Usually, the longer it’s been, the larger the number of lenders that are willing to consider you, and on better terms.
An IVA usually lasts 5 or 6 years. Some specialist lenders may consider an application after your IVA has been satisfied, but there’s no single waiting period that applies to every lender. At 6 years after its start date, the IVA drops off your credit record. At this point, you should find more options available, but this will depend on various factors (not least what shape your credit record is in, and what you can afford).
Here are a few ways to help you boost your chances of being considered for a mortgage after an IVA:
On a joint application, your lender will assess the credit records of both the applicants. So one partner’s IVA will affect the whole application. If the partner without the IVA applies on their own, however, only one income will be considered when it comes to the affordability checks (how much you can afford to make in monthly mortgage payments).
If you own a home, the terms of your IVA may include requirements relating to the equity in your property. What happens will depend on the terms of your individual arrangement, so check your IVA documents or speak to your insolvency practitioner before making decisions about your mortgage. Find out more about remortgaging when you have bad credit in our guide.
DEBT WARNING. Consolidating debts into your mortgage could mean you pay more overall and your home may be at risk if you do not keep up repayments
Yes, you have to declare it if you have an IVA – the lender will see it on your credit record anyway, so it’s best to be upfront with your broker and potential lender. If you receive any sort of windfall or unexpected lump sum, such as an inheritance, during an IVA, you have to tell your insolvency practitioner about that and it could affect your IVA.
Your IVA affects what deals you can access (if any), the interest rate of these deals and the amount of deposit you’d have to have.
Depending on how recent your IVA was and your wider circumstances, you may need a larger deposit than someone without recent adverse credit. Interest rates may also be higher. The deposit and rate available to you will depend on the lender’s criteria, your credit history, affordability and personal circumstances. The amount you can borrow will be based on your income and what the lender decides you can afford to pay.
A mortgage broker can help you understand which lenders may consider your circumstances and compare the options available to you. Our expert mortgage brokers work with a wide panel of lenders, including high-street names and specialists. While we don’t cover every lender, we can compare a broad range of suitable options, including those who consider applications from people with a low credit score.
You can explore the options you might be eligible for by having a chat with one of our mortgage experts, for free.
Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito by Monzo is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
This article is based on guidance from organisations such as MoneyHelper, Citizens Advice and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a mortgage deal.
This article is for general information only and isn't personal financial advice.
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