Last reviewed: June 2026
TL;DR- An IVA (Individual Voluntary Arrangement) is a formal insolvency procedure that remains on the credit file for six years from the date it was registered.
- While an IVA is active, obtaining a mortgage is not possible - most lenders require the IVA to be completed and satisfied before they will consider an application.
- After the IVA is completed, specialist adverse credit lenders may consider applications, with larger deposits typically required.
- Supervisor consent may be required before making any significant financial commitments during an active IVA.
What Is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal insolvency procedure under the Insolvency Act 1986 that allows an individual to reach a binding agreement with their creditors to repay a proportion of their debts over a defined period - typically five to six years. The IVA is supervised by a licensed insolvency practitioner. Creditors who vote in favour of the IVA are bound by its terms, which typically involve the debtor paying an agreed monthly amount and surrendering any windfall receipts above a threshold.
An IVA is an alternative to bankruptcy. It preserves the debtor's ability to retain assets (including a home, subject to equity requirements in the IVA terms) and allows them to continue trading if self-employed. However, the IVA is recorded on the Individual Insolvency Register and on the credit file.
How an IVA Affects the Credit File
An IVA is registered on the credit file from the date it is approved and remains for six years from that date. During the IVA, the credit file will show the IVA as active. After the IVA is completed (all agreed payments made and the insolvency practitioner issues a completion certificate), the record is updated to show the IVA as satisfied, but it remains on the file until the six-year period expires.
Creditors whose debts were included in the IVA may also have registered defaults against the individual's credit file before or at the time of the IVA. These default records are separate from the IVA record and may also remain on the file for six years from their registration dates.
Getting a Mortgage After an IVA
Obtaining a mortgage while an IVA is active is extremely difficult. The IVA supervisor must typically be consulted before any significant financial commitment is made during the IVA. Taking on new credit without the supervisor's consent may breach the IVA terms.
After the IVA is completed and satisfied, specialist adverse credit lenders may consider mortgage applications. The key factors lenders assess include:
- Whether the IVA is fully completed and a completion certificate has been issued.
- The time elapsed since the IVA was registered and since it was completed.
- The rest of the credit profile and whether credit has been managed responsibly since the IVA.
- Income stability and employment history.
- The size of the deposit available - typically 15-25% is required after a recent IVA.
Differences Between IVA and Bankruptcy for Mortgage Purposes
Both an IVA and bankruptcy are formal insolvency procedures that significantly affect mortgage eligibility. Key differences from a mortgage perspective:
- Duration: an IVA typically lasts 5-6 years; bankruptcy typically discharges after one year.
- Property: an IVA may allow the individual to retain their home (subject to equity clauses in the IVA); bankruptcy may result in the trustee claiming the equity in the property.
- Credit file: both remain on the credit file for six years from registration, though the IVA period is longer than the bankruptcy period, meaning the credit file may still show the IVA as active for longer before the six-year drop-off.
Frequently Asked Questions
Can I get a mortgage during an active IVA?
Getting a mortgage while an IVA is active is extremely difficult. Most lenders will not consider applications where an active IVA is on the credit file. Taking on new credit typically requires the IVA supervisor's consent. In most practical cases, mortgage applications should wait until the IVA is completed.
Does completing an IVA early improve mortgage prospects?
Completing an IVA early (paying off the agreed amount ahead of schedule) and obtaining the completion certificate improves the credit position, as the IVA is updated to satisfied status. However, the six-year record from the original registration date still applies. Earlier completion means more time can elapse between completion and the mortgage application, which generally improves lender options.
Will a mortgage lender know about my IVA?
Yes. The IVA is recorded on the Individual Insolvency Register (publicly searchable) and on the credit file. Lenders conduct credit searches that will reveal the IVA. Full and honest disclosure is required on mortgage applications - failing to disclose an IVA is mortgage fraud.
How long after an IVA can I get a mainstream mortgage?
Mainstream lenders typically require a clean credit file, meaning the IVA must have dropped off the credit file (six years from registration) before they will consider an application. If the IVA was registered six years or more ago and has been completed, mainstream lender applications may be possible, subject to the rest of the credit profile. Specialist adverse credit lenders can consider applications earlier than this.
