Buying a home or remortgaging together is a big life step, and it’s completely normal to want to understand where you stand before making any plans.
This guide explains how an IVA affects joint mortgage applications, what your options are, and what you can do to improve your chances in the future.
How Does an IVA Affect Mortgage Applications?
An IVA is a formal insolvency solution and is recorded on your credit file for six years from the date it starts.
During this time:
- Most mainstream lenders will not offer you a mortgage
- Your credit score will be significantly affected
- You are usually restricted from taking on new credit without permission
Because a joint mortgage application is assessed based on both applicants, your IVA will almost always affect the outcome, even if your partner has a good credit history.
Can You Get a Joint Mortgage While the IVA Is Active?
In most cases, no.
The combination of:
- The IVA showing on your credit file
- The borrowing restrictions within the IVA
- Lenders’ risk policies
means that joint mortgage applications are usually declined while the IVA is ongoing.
Even specialist lenders are very cautious about lending to someone who is currently in an IVA.
What If the Mortgage Is Only in My Partner’s Name?
If your partner applies for a mortgage on their own:
- Your IVA is not directly part of their credit file
- However, if you are financially linked (joint accounts, joint debts, etc.), lenders may still take your situation into account
- Some lenders may also consider household circumstances, especially if you’ll be living in the property
This is sometimes possible, but it depends heavily on the lender and the overall situation.
What About Remortgaging an Existing Joint Mortgage?
If you already have a joint mortgage and then enter an IVA:
- Your existing mortgage is not automatically affected
- You must keep up your mortgage payments as normal
- Remortgaging during the IVA is usually very difficult or impossible
Will My Partner’s Credit Be Affected?
Your partner’s credit file is not automatically damaged by your IVA.
However:
- If you have joint debts or joint financial products, there is a financial association
- Lenders may view your partner as higher risk because of that link
- This can make joint borrowing more difficult during the IVA
What Happens After the IVA Is Completed?
Once your IVA is completed:
- You are no longer bound by its borrowing restrictions
- Your debts included in the IVA are written off
- The IVA will remain on your credit file until the six-year point from the start date
Some lenders may start to consider mortgage applications a year or two after completion, but:
- You will usually need a larger deposit
- Interest rates may be higher
- Options will be limited at first
When Does It Become Realistic to Apply?
For many people, the realistic time to apply for a joint mortgage is:
- After the IVA has been completed, and
- After it has dropped off the credit file (six years from the start date)
At that point, your credit record can start to look much healthier, especially if you’ve kept all other bills up to date.
How Can You Improve Your Chances?
You can start preparing early by:
- Paying all bills on time
- Avoiding new debt
- Building up a deposit
- Checking and cleaning up your credit file
- Making sure any old accounts are marked as settled
Is an IVA Still Worth It If You Want to Buy a Home?
For many people, yes.
An IVA is often the stepping stone that allows them to clear unmanageable debt and eventually get back into a position where a mortgage becomes possible again.
Without dealing with the debt, home ownership may stay out of reach indefinitely.
Getting a joint mortgage while you’re in an IVA is usually not possible, but it doesn’t mean you’ll never be able to do it.
An IVA is about fixing the underlying problem first. Once it’s completed and your credit profile has time to recover, buying a home together becomes a realistic goal again.
What should I do now?
If you’re in an IVA or thinking about starting one and are worried about how it could affect your future plans, My Debt Plan can help you understand your options and choose the right path.
You can get debt help online or speak to our friendly team for a confidential, no obligation conversation. Call us today on 0161 464 0870 and start taking back control of your finances.
