Mortgage After IVA
Getting a Mortgage After IVA
You may have heard or been told that if you want to get a mortgage in the future, you should avoid an IVA (individual voluntary arrangement) and use an Informal Debt Management Plan. However, this isn’t accurate and it’s unlikely to be any easier to get a mortgage after a DMP than it is with an IVA.
If you have an IVA, you may be under the impression that obtaining a mortgage is well out of your reach. But that isn’t true, there are still plenty of lenders out there that are willing to provide you with a mortgage after IVA. However, you’ll need the help and guidance of a specialist mortgage broker, which luckily, we can help with.
As a specialist mortgage broker, we can identify the most suitable mortgage for your individual needs and help you apply for it, to help you get the keys to your dream home in a way that’s stress and hassle-free for you.
What Is a Mortgage After IVA
A mortgage after an IVA, is just like any other mortgage, with the main difference being it is better suited to people that have just had an IVA and are trying to get a mortgage. The main thing that acts as a barrier when it comes to applying for a mortgage is your poor credit score following an IVA.
Due to this, even if the record has already come off your credit file, it’s highly likely that you will still have to use an adverse mortgage lender, as there’s a strong possibility that you will be unsuccessful if you approach the lender yourself.
Adverse lenders tend to charge a higher rate of interest than traditional high street lenders, but don’t let that put you off the thought of a mortgage, as an affordable mortgage after an IVA is still attainable. The high-interest rate won’t stay that way forever, and normally you will be able to remortgage to a better deal after two years has passed.
All Hope Is Not Lost
If an IVA has been the best debt solution for your situation, you can have peace of mind that there are mortgage options that are available to you once it’s been completed. Depending on your circumstances, some lenders are willing to offer up to 95% loan to value mortgages. However, you will need the help of a specialist mortgage broker.
What Size Deposit Will I Need?
The size of the deposit you need in order to secure a mortgage after IVA is dependant on how long it has been since the Arrangement started. Essentially, the longer you are able to wait the smaller amount you will require.
If you’ve completed your IVA early and it is still only 3-6 years from the start date, there are still lenders that will consider you. However, you are likely to require a deposit of 25% of the value of the property you are looking to buy.
After 6 years when the record of the Arrangement has come off your credit file, more lenders become available and you may be able to put down a deposit of as little as 5%.
Give Us a Call
All debt solutions will affect your credit score and make getting a mortgage that little bit more difficult than if you had a good credit score. However, there are ways around things and with our help and guidance, we can find the solution to providing you with a mortgage after IVA.
We take the stress away of finding a mortgage after IVA, as we have the right contacts and knowledge to match you with the ideal mortgage for you, even after IVA. You could search tirelessly for a lender that will provide you with a mortgage after IVA but still, see no success. However, we do all the legwork for you and guarantee success. All you need to do is give us a call.
Your home may be repossessed if you do not keep up repayments on your Mortgage or other loans secured upon it.
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