Bad Credit • Remortgage
An IVA makes remortgaging harder — not impossible. Once settled (and sometimes as part of settlement), specialist lenders may consider you. Here’s the realistic timeline, equity you’ll likely need, and how to present a strong case.
Key takeaways
- Most lenders want ~3 years after IVA completion; a few consider immediately on settlement.
- Equity is king — 25–30%+ usually unlocks better options and pricing.
- Your IVA supervisor’s approval is essential if settling via remortgage funds.
Pillar guide: For the full picture on products, deposits and lender appetite, see → Remortgage with Bad Credit.
What Is an IVA and How Does It Show on Your File?
- A formal, legally binding agreement to repay debt over time (usually 5–6 years).
- Records remain on your credit file for six years from the start date.
- Even after completion, many lenders remain cautious for a period.
Can You Remortgage During an IVA?
- Usually no. Disposable income is tied up in the IVA and high street lenders will decline.
- Some IVAs include an equity release clause — that’s not the same as switching to a new lender.
Remortgaging After an IVA – Your Options
- Immediately after settlement: A handful of specialists may consider a new deal.
- ~3 years post‑completion: Many more lenders open up if conduct is clean.
- 6+ years: The IVA drops off your file and choices widen significantly.
- Settle via remortgage: Sometimes possible with supervisor approval and sufficient equity.
Need to settle an IVA?
We’ll check lenders who may allow settlement from remortgage funds.
How Much Equity Do You Need?
- Expect lenders to prefer 25–30% equity after an IVA.
- Lower equity can work in niche cases, but pricing and choice are tighter.
Practical Steps
- Speak to your IVA supervisor before making plans; get a completion certificate if finished.
- Keep your recent conduct spotless; avoid new missed payments.
- Check all three credit files; correct errors and ensure the IVA status is accurate.
- Work with a broker — IVA cases are niche and lender criteria change often.
Check all three credit files in one place
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“I was still in my IVA but needed to remortgage. Honest Mortgages found a lender who allowed me to settle the IVA with the remortgage funds. Now I’m back on track.”
FAQs – IVA & Remortgaging
Can I remortgage while still in an IVA?
In most cases no, but some lenders allow settlement from remortgage funds with supervisor approval.
How long after an IVA before I can remortgage?
Many lenders prefer ~3 years discharged; a few consider immediately on settlement.
Do I need equity after an IVA?
Yes. 25–30% equity is common for broader options and sharper pricing.
Can remortgage funds be used to settle an IVA?
Sometimes, with your supervisor’s approval and sufficient equity.
Will high street banks accept me after an IVA?
Unlikely at first. Specialist lenders are usually required in the early years.
