An Individual Voluntary Arrangement (IVA) is one of the more serious credit events, but it doesn’t mean your Right to Buy (RTB) dream is over. Many specialist lenders will consider applications once the IVA is settled — and in some cases, settlement can even be completed using your Right to Buy mortgage funds.
- Your Right to Buy (RTB) discount often counts as your full deposit, even with bad credit.
- Most specialist lenders accept 100% of the discount; a few may ask for a small buyer contribution (e.g., 5%).
- Recent or serious credit issues narrow lender choice; strong discounts and clean recent conduct help.
What Is an IVA?
- A legally binding agreement with creditors to repay debt over time (usually 5–6 years).
- It stays on your credit file for six years from the start date.
- High street banks won’t consider you until it’s gone — but specialist lenders may.
Can You Get a Right to Buy Mortgage with an IVA?
- During an IVA: almost impossible — your disposable income is tied into the arrangement.
- Immediately after settlement: a small pool of specialist lenders may consider you.
- 3+ years post-settlement: a wider range of lenders becomes available.
- 6+ years from start: the IVA drops off your file; mainstream options may return.
Settlement via the Right to Buy Mortgage
In some cases, lenders will allow you to settle your IVA using the funds from your Right to Buy mortgage. This usually requires:
- Approval from your IVA supervisor.
- Confirmation of the settlement figure.
- Comfortable affordability and a strong RTB discount.
Timeline – IVA & Right to Buy
| IVA Status | Chance of Approval |
|---|---|
| Active (not yet settled) | Almost zero — lenders won’t approve. |
| Just settled | Small pool of specialist lenders may consider. |
| 3+ years since settlement | Much wider choice, especially with strong discount. |
| 6+ years since start | IVA drops off your file completely. |
Case Studies
Case A – Recently Settled IVA
K aren completed her IVA 4 months ago. With a 40% RTB discount and stable income, we placed her with a specialist lender who accepted the recent settlement.
Case B – Settled 4 Years Ago
D avid settled his IVA 4 years ago. With clean conduct since and a 30% discount, he was approved by a specialist building society at a more competitive rate.
Practical Steps if You’ve Had an IVA
- Get your completion certificate — lenders will ask for it.
- Check your credit report — make sure the IVA is marked as settled.
- Avoid new issues — no fresh missed payments or defaults.
- Leverage your RTB discount — bigger discounts = more lender comfort.
- Use a broker — most IVA-friendly lenders are broker-only.
