Can One Apply for a Mortgage While Having An IVA?

Practically, getting a mortgage is a pretty essential step in life. Honestly, nobody who really reaches out to a mortgage lender will need to jump through some of the major hoops, but for people who are already in the IVA scheme, accessing a mortgage can be majorly challenging stuff!

Well, here, in this guide, we’ll explore each & every strategy of getting a mortgage while the IVA is in place, beginning with what an IVA is, how an IVA actually pose impact on your ability to access any kind of mortgage, the actions you require to take to get a mortgage during the IVA, & whether getting a mortgage is simple and straightforward after the arrangement has finished!

What is an IVA?

IVA often known as an Individual Voluntary Arrangement is actually a legally binding agreement that is conducted between an individual & their creditor – any person, third party, or company they owe money to – to pay back their debt.

Basically, IVA is a payment plan scheme for anyone whose debt is getting unmanageable. The Individual Voluntary Arrangement enables the people to take all of their debts & convert them into one monthly payment that they will pay to their lenders over a long period of time – generally 5 or 6 years. And, at the end of the IVA agreement, any debt amount left over will be eradicated from your name.

Basically, IVAs are set up by an IP or Insolvency Practitioner, an expert debt professional who will act on your behalf. This is an IP’s task in order to set up the agreement, for communicating with lenders, pay them during the arrangement process, & assure that all these payments are made to the right banker at the correct time.

Can I get a mortgage while IVA is in place?

Although those in an IVA usually focus most of their concentration on repaying debts throughout their arrangement, & the rest of their lives do not stop while they do. The majority of the people who are in an IVA want to pay back what they owe & also strive to work towards clean credit since in the near future they can get on with things – such as purchasing a house.

While this is feasible to get a mortgage with an IVA, there are a lot of issues to overcome. Always keep in mind that, like each and every debt solution, IVAs pose an impact on a person’s credit history. It implies locating a mortgage lender who will lend you, can be a real challenge.

Each & every mortgage application is different, Therefore, it’s completely possible that you will locate a mortgage that would be best suited for you. Because of the difficulties as well as challenges incorporated with IVA mortgages, you can always seek debt guidance before going ahead with any kind of application.

Get best IVA advice from our experts and do let us know in the comment box what do you think about our article.