An Individual Voluntary Arrangement is one of the more serious credit events a lender will see, and understandably so: it is a formal, legal agreement to repay creditors, usually over around five years, rather than a single missed payment or unpaid debt. That said, an IVA in your past does not close the door on a mortgage permanently. Timing is what decides almost everything: whether it is still active, how long ago it was satisfied, and how much deposit you have.
Key takeaway: An IVA on its own does not rule you out of a mortgage forever, but it does rule you out while it is still active. Most lenders want to see it satisfied for at least three years, and how long ago that happened, together with your loan to value, are what shape your realistic options from there.
[[stats: Specialist lenders = Where the high street says no | 3 Years = Typical minimum since satisfied | 6 Years = How long it can stay on your file | 90+ = Lenders searched | Free = Initial consultation | National = Coverage across the UK]]
How an IVA affects a mortgage application
An IVA is a formal insolvency arrangement, agreed through a licensed insolvency practitioner, in which you repay creditors an agreed amount over a fixed term rather than the full debt. It is recorded on the Insolvency Register, a public record, for the duration of the arrangement, and it also appears on your credit file, typically for six years from the date it started rather than the date it finished.
Once the arrangement has run its course and every agreed payment has been made, it is marked as satisfied or completed. That word, satisfied, becomes one of the most important pieces of information a lender will look at.
The three factors that decide your options
Compared with a CCJ or a default, an IVA is assessed on fewer moving parts, but each one carries more weight.
[[table: What lenders assess | Why it matters ;; Whether it is still active | An active IVA is a live, formal insolvency arrangement. Almost no mainstream or specialist lender will proceed while it is ongoing ;; How long since it was satisfied | This is usually the single biggest factor. The longer since completion, the more lenders open up to you ;; Your loan to value | A larger deposit offsets the perceived risk and can open up lenders that would otherwise decline]]
Two people with the same IVA history can face very different markets depending on where they sit on these three points. Someone whose IVA was satisfied five years ago with a 20% deposit is likely to have a reasonably wide choice of lenders. Someone whose IVA finished eight months ago with a 5% deposit is in a considerably more specialist position, though not necessarily an impossible one.
Active versus satisfied: why the line matters so much
While an IVA is active, you are still under a formal repayment arrangement with your creditors, and taking on a new mortgage commitment sits directly against that. This is why an active IVA is treated so differently to almost every other type of credit issue on this site: most lenders, specialist or otherwise, will not proceed at all.
Once it is satisfied, the picture changes considerably. It tells a lender you completed a difficult, formal repayment plan in full, which some underwriters view more favourably than a smaller, informally resolved debt. The clock that matters most from this point on is how long ago that completion happened, not how long ago the IVA started.
Why your deposit does even more work here
Deposit size matters on every adverse credit case, but it carries particular weight after an IVA, since lenders are pricing in a formally recorded insolvency rather than a single account falling behind.
A larger deposit reduces the lender's exposure if things go wrong, which is why the same IVA history can be workable at 75% loan to value and considerably harder at 90% or 95%. If you are close to a deposit threshold, building on it can open up more lenders than waiting for extra months to pass since satisfaction.
One lender's range, from an active arrangement to a distant memory
Most lenders draw a single line: no active IVA, and a fixed number of years since it was satisfied. Melton Building Society's residential range is a useful illustration of how much that line can move across products from the same lender.
[[table: Melton Building Society tier | Its position on an IVA ;; Credit Recovery | An active IVA can be considered, provided it is satisfied or being conducted satisfactorily ;; Credit Assist | An active IVA can be considered, provided it is being conducted satisfactorily and will be repaid on or before completion ;; Near Prime | The IVA must be satisfied, generally for 12 months or more ;; Standard range | The IVA must have been settled for more than 4 years]]
This is close to a worst-case illustration: even someone still inside an active IVA may have a route through Melton's Credit Recovery or Credit Assist products, provided it is being conducted satisfactorily. Most lenders will not go anywhere near that far.
Snapshot: how six lenders treat an IVA
Melton is not the only lender with a published position on IVAs. Tap any card below for a closer look at how each one assesses one.
[[casestudies: Metro Bank|Satisfied IVAs considered on its Near Prime range, three years on standard|Metro Bank's standard residential range requires an IVA to have been satisfied for more than three years. Its Near Prime range is more flexible, requiring only that the IVA is satisfied, without a fixed minimum period stated. An active IVA is not accepted on either range. ;; Pepper Money|Three years since discharge on its main range|Pepper Money's residential range will accept an IVA where it occurred, and was discharged, more than three years ago. An active IVA is not accepted. ;; Skipton Building Society|Three years since discharge, alongside a clean recent conduct record|Skipton requires any IVA to have been discharged at least three years ago, with no allowance for an active arrangement. Applicants must also be within their limits on all revolving or flexible credit lines and have no arrears on any account in the last six months. ;; HSBC|Unacceptable within three years, considered beyond that|HSBC classes an applicant as unacceptable if they have been subject to an IVA or bankruptcy order that was in force at any time within the last three years. Once an IVA has been discharged for more than three years, an application can be considered. Individual cases within that three year window may still be looked at in exceptional circumstances via HSBC's helpdesk. ;; Melton Building Society|A genuinely graduated range, from an active IVA to a settled one|Melton's residential range spans four tiers. Its Credit Recovery and Credit Assist products can consider an active IVA that is being conducted satisfactorily, its Near Prime range requires the IVA to be satisfied for 12 months or more, and its standard range requires it to have been settled for more than four years. ;; Nottingham Building Society|Three tiers, down to a discharged IVA of any age|Nottingham Building Society's core range requires an IVA to have been discharged for three years. Its Life Happens 1 range reduces that to one year since discharge, and its Life Happens 2 range will consider an IVA discharged at any time, provided it is not currently active.]]
Good to know: This is a snapshot of published criteria from six lenders, not an exhaustive market view, and ranges like these change regularly. A mortgage broker at Quanstrom Financial can check current criteria across the whole market, including lenders not listed here, against your specific situation.
It is worth remembering that products like Melton's Credit Recovery and Credit Assist ranges show real flexibility can exist even for an active IVA, not just a historic one. Criteria like this often sits outside a lender's headline products and is assessed case by case, which is exactly the kind of detail a mortgage broker at Quanstrom Financial can check on your behalf before you apply anywhere.
What shows up on your file, and for how long
An IVA is recorded on the Insolvency Register for as long as it remains active, and separately appears on your credit file for six years from the date it started, regardless of when it was completed. This is different to a CCJ or a default, where the clock generally runs from the event itself rather than from an earlier start date.
It is worth checking your credit file with one of the main credit reference agencies before you apply, so you know exactly when your IVA started, when it was satisfied, and how it currently appears. Our guide to credit scoring explains what lenders see and how to check.
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Practical steps if you have an IVA in your past
- Confirm your IVA is fully satisfied and get written confirmation from your insolvency practitioner if you do not already have it.
- Check exactly when it was satisfied, since this date, not the start date, is what most lenders measure from.
- Work out your deposit position. Getting to a better loan to value band may open up considerably more lenders.
- Do not apply speculatively. Each application leaves a footprint, and a decline on an IVA case makes the next one harder.
- Get advice before applying, not after. This is exactly the situation where knowing which lender to approach first matters most, given how differently lenders treat this.
Whichever East Sussex town you are buying or remortgaging in, a mortgage broker at Quanstrom Financial can search the whole market on your behalf, including the specialist lenders that most high street banks and comparison sites will not show you.
How this compares with other credit issues
An IVA sits at the more serious end of the credit issues that can affect a mortgage application, alongside bankruptcy, and is generally treated more cautiously than a CCJ or a default on its own. Even so, the same underlying principle applies: it is the detail, not the label, that decides your options.
Our complete guide to adverse credit mortgages covers the wider landscape, including real client examples, and if a CCJ or a default is also part of your history, our CCJ mortgage guide and default mortgage guide explain what lenders look at there specifically.
Frequently asked questions
Will I pay a higher rate forever?
Hopefully not. A mortgage broker at Quanstrom Financial can work with you to identify what changes could help you move onto a high street mortgage in the next two to five years. This is not guaranteed, but there are practical steps that can help you work towards that goal.
Can I get a mortgage with an IVA in my past?
In many cases yes, provided it is satisfied rather than active. How long ago it was satisfied and your deposit size are the two biggest factors in how wide your options are.
Can I get a mortgage while my IVA is still active?
Generally no. Almost all lenders, specialist or mainstream, will not proceed while an IVA remains active, since it is a live, formal repayment arrangement. A small number of specialist products will consider an application if the arrangement is being conducted satisfactorily and will be repaid by completion.
How long does an IVA stay on my credit file?
Typically six years from the date the IVA started, rather than the date it was completed. This is a common point of confusion, so it is worth checking your file directly to see exactly when yours is due to drop off.
How long after my IVA is satisfied can I apply?
It varies significantly by lender. Some specialist and near-prime lenders will consider an application within a year or so of satisfaction, while others require three years or more. A mortgage broker at Quanstrom Financial can match your specific timeline to the right lender.
Will I need a bigger deposit after an IVA?
Often, though not always. Deposit size is one of the main ways a lender offsets the extra risk of a formal insolvency event, so a larger deposit widens your choice of lenders and can improve the rate available.
Does the reason for my IVA matter to a lender?
Generally not in detail. Most lenders focus on whether it is active or satisfied, how long ago it was satisfied, and your deposit, rather than the specific circumstances that led to it.
Is an IVA treated more seriously than a CCJ or a default?
Usually, yes. An IVA is a formal insolvency arrangement covering multiple debts, whereas a CCJ or a default relates to a single debt. Lenders tend to require longer since satisfaction and often a larger deposit for an IVA than for a comparable CCJ or default.
Will an IVA on a joint application affect my partner too?
It can, since a lender assesses the application as a whole rather than each applicant separately. The other applicant's income and credit history still matter, but the IVA is likely to influence which lenders will consider the application at all.
Can I get a mortgage if I have had an IVA and a CCJ or default?
It is harder but frequently still possible, particularly where the CCJ or default is smaller, older and settled. Multiple credit issues narrow the market considerably, and this is where specialist lenders and proper advice matter most.
Do you help with IVA mortgages across Eastbourne and East Sussex?
Yes. Quanstrom Financial is a whole-of-market mortgage broker based in Eastbourne, and we regularly help clients with a past IVA from Eastbourne, Brighton, Hastings, Lewes, Bexhill, Seaford, Uckfield, Hailsham and the wider East Sussex area. Being whole-of-market means access to specialist lenders that are not available directly on the high street.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole-of-market mortgage broker based in Eastbourne, East Sussex, specialising in mortgages for clients with adverse credit.
This article is general information only and does not constitute personal advice. Lender criteria vary considerably and change regularly, and whether a mortgage is available depends on your individual circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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