Remortgage With An IVA

Get in touch for a free, no-obligation chat about how we might be able to help you.

What's On This Page?

Get In Touch
1 Step 1
reCaptcha v3
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Remortgage With An IVA

Ashleigh Halit talks about remortgaging with an IVA.

Can I remortgage with an IVA and what does IVA stand for?

An IVA is an Individual Voluntary Arrangement, which you would put in place to repay overdue debts.

You’re probably not going to find a lender that would take on a remortgage while you’re in an active IVA. You also have to ask the IVA provider for permission for any changes to your credit.

That’s the first port of call for a remortgage – explain to them that your mortgage is coming to an end and that you want to look for an alternative product. I don’t see that they would have a problem with this, necessarily, but I’m not an IVA consultant.

You would then approach your lender, who should be able to offer you a ‘product transfer,’ which takes you from one product to another. Otherwise, when your fixed rate ends you would move to the bank’s standard variable rate, which is typically higher than the rate you were on.

Your lender will be able to offer you a range of products to move onto. It doesn’t involve any paperwork or credit scores. They’re just simply giving you an option to move on to another product.

Do I need permission from my IVA provider to remortgage?

Yes. You must approach your IVA provider.

Will I need a larger deposit to remortgage with an IVA?

Once you’ve come out of the IVA and you want to remortgage away from your existing lender, it would revert back to standard lender criteria. It depends on your situation at the time, which lender you approach and how much equity you’ve got in the property already.

With a remortgage, you don’t need a deposit – so what the question is really asking is whether you need more equity in your property to move to another lender.

There are a lot of lenders on the market and hopefully there will be one that will fit within your Loan to Value. You’ve come out of your IVA, you’ve started a clean slate, and many lenders will happily take someone that’s been discharged from an IVA.

It’s usually three years after the IVA comes to an end that most lenders will be happy to consider you for a new mortgage. But again, if you can’t switch lenders, you’ve got the option to stay with your existing lender and move on to a different product.

Can I switch to a different lender while in an IVA?

You can only switch lenders once your IVA has ended, and most lenders require the IVA to be three years in the past.

Will I need to pay off the IVA in full before remortgaging? How long after an IVA can I remortgage?

If you decided to pay off your IVA early, you would still need to wait three years from the discharge date. Either way, you’re looking at at least three years before a lender would consider you.

A bit of time needs to pass by, but the good news is that if you’ve already got a mortgage, you can hopefully get a product transfer.

Will remortgaging during an IVA increase my monthly payments?

You can’t remortgage for three years after your IVA. At that point, it will depend on what your credit is like.

The right thing to do is to sit down with a mortgage broker. Take along a copy of your credit report, your pay slips and your bank statements. We’ll do a budget planner and have a look at your situation. Then we can go away and find the right lender and a product that you’re happy with.

Are there any fees involved in remortgaging after an IVA?

It depends on the broker or lender you approach. Some mortgage brokers and most banks don’t charge fees for advice. There are brokers who specialise in helping people that have had adverse credit – these probably will charge you a fee.

The right thing to do is shop around and do your research. The most important thing isn’t necessarily about what it’s going to cost, but making sure that you’re with the right person, who has experience in helping people who’ve previously had IVAs.

Speak To an Expert
We know that when it comes to your home and family, only the best will do, which is why we work with market-leading providers to ensure that we always find the best deal for you.

Can I remortgage to pay off my IVA early?

Probably not, just because you’d still be in that IVA. Remember there’s that discharge period where most lenders want to see you clear of the IVA for at least three years.

Can I apply for a joint remortgage if my partner is not in an IVA?

It would default to the person with the IVA and their status. Unfortunately, again, if that person’s still in the IVA, then it would impact your ability to change lenders on a joint mortgage.

What documents will I need to provide when applying to remortgage with an IVA?

If you’ve got something that proves when you were discharged from the IVA that would be good, along with a copy of your credit report.

After that it’s the standard information – proof of income, pay slips or self-assessment tax returns and company accounts, if you’re a limited company owner. You also need ID, proof of address and bank statements for the last three months.

Can I be refused a remortgage because of my IVA? How can I improve my chances of remortgaging after an IVA?

You can be refused a remortgage for lots of reasons. It will always help to keep on top of your credit. If you do take on any new credit commitments, make sure you can afford to pay them back.

Don’t open too many lines of credit, because that can pull down your credit score. Make sure that you’ve done very basic things such as registering yourself on the voters’ roll.

If you’ve got utility bills and mobile phone contracts, make sure they’re paid on time. It’s really just keeping on top of things. A really good idea to do is sit down with a financial advisor or even a mortgage broker to complete a simple budget planner. If you’re not very good at budgeting, get some help so you don’t end up back in the same situation.

You can keep an eye on your credit rating – lots of different companies offer credit reports and alerts, so if you notice something’s not right you’ve got that heads up. Consider registering with Experian, Equifax or Credit Karma, for example, and look at your credit report on a monthly basis. It helps you keep on top of things so they don’t go out of control.

Can I remortgage to consolidate other debts during an IVA?

That would be a no because, again, whilst you’re in the IVA you wouldn’t be able to get the mortgage. Lenders want to see you three years clear of the IVA. But once the IVA is gone, if you still have debts left over, depending on the lender and the situation, you might be able to remortgage and consolidate those debts.

Can I release equity from my home during an IVA?

The way to release equity is to apply for a remortgage, a second charge or a further advance. This would be difficult to do whilst you currently have an IVA.

How can a mortgage broker help with a remortgage after an IVA?

It’s really important that you are very open and honest about your previous situation. Don’t feel embarrassed that you’ve had an IVA. It’s really not a problem. People in the mortgage industry have come across these situations many times before.

You need to explain what’s happened to help us position your case with a lender. We need to talk through your credit history and any problems you may have experienced in the past.

So talk to your mortgage broker, explain your situation and give as much detail as you can. That will really help us pinpoint the right lender, first time.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

What Our Clients Say