Can You Get a Mortgage With an IVA?

There is nothing stopping you from getting a mortgage with an IVA. However, you might find it much more difficult to get one. As an Individual Voluntary Arrangement (IVA) does appear on your credit file for 6 years from the start of your IVA.

You may also want to read our article on how an IVA affects your spouse.

Can I get a mortgage with an IVA?

You can get a mortgage and should talk to your Insolvency Practitioner (IP). The issue is the rate that you will be able to borrow at. Your credit rating will be poor and any sort of finance is expensive. If a property you finance gains in value and there is equity in your house before the IVA is completed, it is likely that you will be forced to re-mortgage to release the equity. Might be worth renting for a while longer. The property market appears to still be falling as well. Just a thought. Take a look at our article on IVAs and property restrictions for more information.

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Will I be able to remortgage after my IVA ends?

If you are worried that you will not be able to remortgage towards the end of your IVA then you can speak to your IP. And discuss what provisions are noted in your proposal to cover such an event. It can be difficult to remortgage, for many reasons, and if it is not going to be possible you should see the details of how this will be dealt with in your IVA documents. It could be that the IVA is extended for a period of time as an alternative, it could be that the IVA simply ends without any extension. These will be specific to your IVA and your IP will be able to explain in detail.

How should equity be worked out for a Protocol Compliant IVA?

The requirement with a Protocol Compliant IVA is to seek a valuation and attempt a remortgage to pay some additional funds into the IVA. There will also be a list of reasons why a remortgage may not be possible, and will not be regarded as a failure if it cannot be achieved. It is also likely to have clauses about any alternative action that may be needed if a remortgage is not possible. If you contact the Supervisor of your IVA they will be able to talk you through the requirements of your IVA. The PCIVA is referring to the IVA Protocol and is a standardised set of terms to ensure that simple consumer IVAs are dealt with in a similar fashion.

What happens If do not pay my mortgage while on an IVA?

If your IVA provider finds out that you are not paying your mortgage, then you will be in breach of your agreement and could be made bankrupt.

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What happens if we have equity in our property but can not remortgage it?

It depends on the terms of your IVA. The most common outcome, if you cannot remortgage at this stage of your IVA, is that the agreement will be extended for a further 12 months. You will need to obtain a rejection letter from your mortgage company then your IVA supervisor will be able to inform you of what will happen in your case.

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