Navigating Mortgages with an Active or Settled IVA

Securing a mortgage can be a challenging journey for anyone, but it becomes particularly complex when an Individual Voluntary Arrangement (IVA) is involved. Whether you're currently in an IVA or have recently settled one, understanding the landscape of mortgage opportunities and the specific requirements can help you navigate this path more effectively. At Mortgage321, we specialise in addressing complex financial situations, and here, we aim to provide clarity and support for those seeking a mortgage under these circumstances.

Understanding Lender Stances on IVAs

An IVA is a formal and legally binding agreement between an individual and creditors to pay off debts over a period of time. It is often considered when an individual cannot repay their debts in full. This can affect your credit rating and, consequently, your ability to secure a mortgage.

Active IVAs: Most high street lenders are likely to view an active IVA as a significant risk factor. Typically, obtaining a mortgage during this period can be particularly difficult because lenders may doubt your ability to handle additional financial obligations.

Settled IVAs: Once an IVA is settled, your chances of obtaining a mortgage improve, but it's crucial to understand that not all lenders will view this scenario favorably. High street banks might still be hesitant, considering the historical credit issues indicated by an IVA.

Chances of Securing a Mortgage

The likelihood of securing a mortgage post-IVA depends significantly on how long the IVA has been settled and your recent financial behavior. Lenders will scrutinize your credit history post-IVA to assess your financial management and risk. The more time that has passed since your IVA was settled, and the stronger your financial behavior has been in that period, the better your chances of securing a mortgage.

Deposit Requirements

For those with an IVA history, the deposit requirements are typically higher. Mainstream lenders might require a larger deposit to mitigate the risk associated with your prior credit history. You may need to provide a deposit of at least 15-25% of the property's value, depending on the lender's policies and the specifics of your financial situation. This is higher than the typical 5-10% required from individuals with strong credit histories.

How Mortgage321 Can Help

At Mortgage321, we excel in finding solutions for clients with unique financial histories, including those affected by IVAs. Our approach involves:

• Expert Guidance: Our team, backed by decades of experience, understands the nuances of mortgage lending with a history of an IVA. We provide clear, jargon-free advice tailored to your specific circumstances.
  
• Specialist Lenders: We have access to specialist lenders who are accustomed to dealing with complex financial situations and are more flexible in their lending criteria.
  
• Tailored Solutions: We assess each client's individual needs and financial status to find the most suitable mortgage products available.
  
• Support Throughout the Process: From initial consultation to the final approval of your mortgage, we stand by you at every step, ensuring that all your queries are addressed and the process is as smooth as possible.
  

Conclusion

While an IVA can complicate the process of securing a mortgage, it's not an insurmountable hurdle. With the right approach and support, you can navigate through these complexities. At Mortgage321, we're committed to helping you turn the possibility of homeownership into a reality, even under challenging financial circumstances.

For more detailed advice and a consultation tailored to your specific situation, contact us today on 01255 440142 or WhatsApp us. Let us guide you through your mortgage journey with expertise and care.