What is an IVA?

An Individual Voluntary Agreement (IVA) acts as a formal agreement between someone struggling with debts and the creditor they owe. The main goal of an IVA is to create a structured plan for repaying debts, typically spanning around 5 years.

This plan helps individuals regain control over their finances. During this process, an Insolvency Practitioner plays a key role as your representative, working with creditors to ensure consistent and timely payments towards your outstanding debts.

Can I get a mortgage in Liverpool with an IVA?

While having an Individual Voluntary Arrangement (IVA) can pose challenges when applying for a mortgage, it’s not an impossible barrier. In such situations, we highly recommend speaking with a mortgage broker in Liverpool to explore potential options.

Given the terms outlined in your IVA agreement, seeking professional advice is essential. Committing to an IVA involves specific agreements that may affect your eligibility for loans, including mortgages. These terms typically remain until all debts are successfully repaid.

Is an IVA right for me?

Affordability is a key consideration within an IVA. Creditors need assurance that you can manage repayments while also having enough disposable income to cover essential living costs, including housing expenses.

How does an IVA affect my mortgage application?

Individuals with an IVA often have a history of significant credit challenges, which can make obtaining a mortgage in Liverpool more complex. Mortgage lenders tend to be cautious about lending to those considered high-risk due to past credit issues.

In addition to examining your credit history, lenders review your disposable income. With an IVA, a significant portion of your income likely goes towards debt repayment.

Combining this with potential mortgage payments raises concerns about having enough remaining income for essential living expenses. It may be wise for those considering moving home in Liverpool to hold off until reducing a significant portion of their debt.

Can I get a mortgage in Liverpool after an IVA?

After completing an IVA, it’s important to thoroughly assess your current financial situation before embarking on the mortgage process. Building up your credit score, saving for a deposit, and planning your move into a new home are important steps.

Affordability remains a top priority when buying a home, and confirming your financial capacity for a mortgage is essential. Our team offer specialist mortgage advice in Liverpool and are here to help.

We can evaluate your mortgage affordability, explore suitable options, and customise a solution that fits your unique circumstances. Feel free to connect with a mortgage advisor in Liverpool for a free consultation, either online or by phone.

Date Last Edited: March 5, 2024