Mortgages After IVA 🏡💼

Curious if you can secure a mortgage after dealing with an IVA? The answer is yes, but it's a bit like navigating a financial obstacle course.

In the pre-2008 days, mortgage lenders were more lenient towards folks with less-than-perfect credit. However, times have changed since the banking crisis. While an Individual Voluntary Arrangement (IVA) helps you repay your debts when financial storms hit, it's considered a red flag on your credit report. But fear not, because some lenders specialize in adverse credit and could still give you a shot at a mortgage.

Here's what you need to know:

Getting a Mortgage with a Current IVA:

• The pool of lenders willing to consider applications while you're in an IVA is narrow.
• Expect strict criteria: 12-24 months of no missed payments and a lower Loan-to-Value (LTV) ratio, meaning you'll need a more substantial deposit. 💷📉

Consider the IVA Implications:

• Acquiring a large asset like a house during an active IVA can have implications on your payment plan and might trigger the 'windfall clause' in your agreement.
• Seek advice from your insolvency practitioner if you plan to buy a home during your IVA. 🏠🔍

Historic/Completed IVA and Mortgage Approval:

• Having a historic or completed IVA improves your chances.
• You'll likely need a smaller deposit and may get more competitive rates.
• Keep in mind, IVAs and credit issues stay on your report for 6 years. 📅💳

Getting That Mortgage After an IVA:

• High street lenders might not be your best bet with an IVA. Seek out specialist lenders who deal with adverse credit.
• Accuracy and planning are essential in your application. A whole-of-market mortgage broker who specializes in adverse credit can be a lifeline.
• Check your credit reports from all three main agencies to ensure accuracy.
• Remember, lenders consider more than just your credit file; they look at affordability, income, and expenses. 📊🤔

Navigating the mortgage landscape post-IVA isn't a solo journey. Connect with a mortgage advisor who can guide you through the process, assess your unique situation, and match you with lenders who could make your homeownership dreams come true.