IVA Mortgage

Although an IVA puts a strain on your credit and thus your borrowing ability, it does not prevent you from getting a mortgage.

Unlike bankruptcy, you can get mortgage or remortgage your home, whether you are in an IVA or have previously been in one.

What is an IVA Mortgage:

• The term IVA mortgage is used to refer to; the process of taking out a remortgage in order to meet the final payment as arranged in the agreement. In other words, this is an IVA remortgage.
• IVA mortgage can also mean applying for a mortgage while within an IVA or having had one recently, this may also be refered to as; mortgage with IVA.

IVA Remortgage:
In the process of setting up the IVA, some creditors may include a clause that stipulates that after a set number of years, some of the equity in your property will need to be released as a final payment to the creditors.

In this case you are limited on when to remortgage, however, this doesn't mean you can't get a good deal on an IVA mortgage, you just need to shop around. Your insolvency practitioner may suggest some lenders, take note but also approach other lenders for a no-obligation mortgage quote.

Mortgage with IVA
If applying for a mortgage within an IVA or soon after the insolvency, you will be subject to high interest rates because lenders will consider you a high risk. IVA mortgages also require a higher than normal deposit due to the level of risk.

To avoid paying high interest rates, ideally you should allow as much time as possible between the IVA and a mortgage application, this would allow your credit rating to recover considerably.

If you cannot wait however, you can contact a subprime mortgage broker; they will know of a number lenders who specialise in mortgages with IVA, from which they'll manage to get various quotes and let you choose whichever you want.

Using a mortgage broker would most likely increase your costs however; most mortgage brokers charge for their services. therefore it might be better to approach the lender directly.

It is important to remember that in this instance, time also plays an inportant role; the longer you wait after the IVA, the less interest you are likely to pay on the mortgage.



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