Can I Get a Mortgage with an IVA?

If you’ve had an Individual Voluntary Arrangement (IVA), you might be wondering: can I get a mortgage with an IVA? While an IVA can feel like a major financial setback, it doesn’t automatically prevent you from getting a mortgage. What it does mean is that the process becomes more challenging - and understanding how lenders treat IVAs is essential to improving your chances of being approved.

What Is an IVA and How Does It Affect Mortgage Applications?

An IVA is a formal, legally binding agreement to pay back debts over a fixed period - usually five or six years. Because an IVA indicates that you’ve experienced serious financial difficulty, it has a major impact on your credit score and how lenders assess risk.

Here’s how it influences your mortgage prospects:

• Most mainstream lenders decline anyone currently in an IVA.
• Even after the IVA is completed, lenders often won’t consider you until six years have passed (when it drops off your credit file).
• Some lenders still treat a recently completed IVA as a red flag, making approval harder.
• Even if approved, your available mortgage amount may be lower, and your interest rate may be higher.

In short: it’s possible - but traditional lenders will typically make you wait, scrutinise your finances more closely, and offer less favourable terms.

Mortgages After an IVA: Specialist Lenders and What to Expect

If you’re currently in an IVA or have recently completed one, you may need to look beyond the high-street banks.

Specialist lenders are more flexible - here’s what that means:

• You’ll likely need a larger deposit, often 25% or more.
• Expect higher interest rates, sometimes significantly higher than mainstream mortgage products.
• Lenders will review your case in detail, including:
  • Your income stability
  • Your repayment history during and after the IVA
  • Your recent credit behaviour
  • Whether the IVA was completed successfully

Specialist lenders are often willing to take more nuanced circumstances into account - but they charge for it through higher rates and stricter deposit requirements.

Why the Timing and Cause of Your IVA Matter to Lenders

Not all IVAs are viewed the same way. Lenders consider:

1. How long ago the IVA was discharged

The more time that has passed, the better your prospects.

• Within 1-2 years: very limited options
• 3-4 years: improving but still restricted
• 6+ years: it’s removed from your credit report entirely

2. Your financial behaviour since completing the IVA

Lenders look for:

• On-time bill payments
• No new missed payments
• Stable employment
• Sensible use of credit (e.g., low utilisation)

3. The cause of the IVA

A lender may view:

• Redundancy, illness or unexpected life events more sympathetically
• Overspending or unmanaged credit as higher risk

Being able to clearly explain the circumstances can help during manual underwriting.

How Keyzy Can Help

For people with an IVA - especially those who have recently completed one - traditional mortgages can remain out of reach for several years. This is exactly where Keyzy’s rent-to-own model provides a real alternative.

Keyzy offers a pathway to homeownership without needing:

• A large upfront deposit
• A perfect credit score
• Immediate mortgage approval
• Years of waiting until your credit file is “clean”

With Keyzy, you can:

1. Move into your future home now

No deposit required to move in and no rental increases for two years.

2. Build your deposit through your rent

100% of your rent for the two-year period becomes your deposit if you choose to buy.

3. Buy at a guaranteed future price

Your purchase price is locked in from day one (optional) - no rising market uncertainty.

4. Take time to improve your credit

The two-year rental period gives you breathing room to rebuild your credit after an IVA so you can qualify for a better mortgage later. Find out more about how Keyzy rent-to-own works.

The Bottom Line

Having an IVA doesn’t mean homeownership is off the table - but it does change the route you may need to take. Traditional mortgages often require long waiting periods, higher deposits, and stricter criteria. Rent-to-own through Keyzy provides a realistic, structured way for people recovering from financial difficulty to move toward owning a home - on their terms, at their pace, and without being held back by past credit challenges.