How long will an IVA stay on my credit file?

An IVA typically lasts for five years; however, it remains on your credit record for six years from the approval date. This duration applies even if you opt to repay your debt as a single lump sum, which generally takes about six months.

During this period, your credit rating will be significantly impacted, making obtaining additional credit, such as loans, mortgages, or even phone contracts difficult. It’s important to note that if your IVA encompasses multiple debts, they might appear separately on your credit report, even though they were repaid through the same agreement.

How will an IVA affect my credit score?

Undoubtedly, an Individual Voluntary Arrangement (IVA) can considerably affect your credit score for several years. While it demonstrates your commitment to making regular payments towards outstanding debts, it also indicates a history of missed payments and the possibility of future defaults.

This may cause lenders to question your ability to adhere to the terms of any subsequent agreements, labelling you as a high-risk borrower. Consequently, you may encounter difficulties obtaining loans, mortgages, or phone contracts, and higher interest rates are likely even if approved.

Despite most debt solutions impacting your credit score for up to six years, they can assist in clearing your debts, enhancing your credit standing, and fostering healthy financial habits that will benefit you lifelong.

For many, these advantages outweigh the temporary dip in credit score. At IVA Helpline, we understand the importance of addressing financial concerns and are here to support you throughout the process.

Can I get a mortgage after an IVA?

Upon completing an IVA, it’s natural to have concerns about your financial future. However, once your debt is repaid, there’s no obstacle preventing you from resuming your regular lifestyle and pursuing a mortgage if desired.

Keep in mind that finding a lender willing to approve a mortgage during or shortly after an IVA can be challenging. As a result, we at IVA Helpline and other financial experts advise beginning your search with a specialist mortgage broker.

These specialist lenders possess the expertise to assist individuals who are either in active IVAs or have recently exited them in securing a mortgage offer tailored to their specific financial circumstances.

It’s important to note that even if you obtain mortgage approval following an IVA, you might encounter higher interest rates or be obliged to provide a larger deposit. This serves to assure mortgage lenders of your commitment to making monthly payments and reducing the likelihood of default.