Bad Credit • First-Time Buyer
An IVA is one of the most serious forms of bad credit, but it doesn’t close the door on owning your first home. With the right lender and deposit, a mortgage is still possible.
Shortcut: See our full guide → First-Time Buyer Mortgages with Bad Credit.
What Is an IVA?
- A legally binding agreement to repay debts over 5–6 years.
- Stays on your credit report for six years from the start date.
- Lenders may still ask if you’ve ever had one, even after it drops off.
Can First-Time Buyers Get a Mortgage After an IVA?
Yes — but it depends on:
- Whether the IVA is active or settled.
- How long ago it was settled.
- The size of your deposit.
- Your credit history since the IVA.
Some lenders accept applications immediately after settlement, while others prefer at least 3 years clear.
How Lenders View IVAs
| IVA Status | Chance of Approval |
|---|---|
| Active IVA | Very limited — a handful of lenders may consider, usually with 30–40% deposit. |
| Recently Settled | Possible with certain specialist lenders and 25–30% deposit. |
| 3+ Years Settled | More lenders available; competitive rates possible. |
| 6+ Years Since Start | Drops off file — some lenders may treat as clean. |
Deposit Requirements After an IVA
- Active IVA: Very difficult; 30–40% deposit may be needed.
- Settled under 3 years: Usually 25–30% deposit.
- Settled 3+ years: Some lenders may accept 5–10% deposit.
Related: How Much Deposit Do First-Time Buyers Need with Bad Credit?
Which Lenders Accept IVAs?
- High Street Banks: Will not accept while an IVA is active or recent.
- Specialist Lenders: More flexible; may allow settlement via mortgage proceeds, or mortgages immediately after settlement.
- Most flexible if 3+ years have passed since settlement.
Case Studies
Active IVA
James was still in an IVA but had a 40% deposit from family. A niche lender considered his case, though at higher rates.
Recently Settled IVA
Laura settled her IVA in 2022. With a 25% deposit, Honest Mortgages placed her with a specialist lender.
Old IVA with 5% Deposit
Ben’s IVA started in 2017 and ended in 2022. By 2024, lenders ignored it, and he got a 95% mortgage with just 5% deposit.
Practical Steps
- Get IVA documents — settlement certificates are often required.
- Save a larger deposit — aim for 25–30% if recently settled.
- If older — you may qualify with just 5–10% deposit.
- Keep the last 12 months clean — no new issues.
- Use a broker — most lenders who accept IVA cases are broker-only.
Check all three credit files in one place
Use our partner link to view your data across agencies. This won’t harm your score.
FAQs – First-Time Buyers After IVA
Can I get a mortgage with an active IVA?
It’s very difficult, but possible with a very large deposit.
Do I need to wait 6 years after my IVA?
Not always — some lenders accept immediately after settlement.
Can I get a mortgage with just 5% deposit after an IVA?
Yes — if the IVA is old enough (usually 3+ years) and the rest of your case is strong.
Do high street banks accept IVAs?
No — only specialist lenders will.
Will rates be higher?
Yes, until more time has passed since settlement.
Further Reading on First-Time Buyers with Bad Credit
Getting a Mortgage as a First-Time Buyer
Deposit Requirements for First-Time Buyers
Government Schemes for First-Time Buyers
Improve Your Chances of Approval
Finding Lenders with Bad Credit
Mortgages After IVA
Mortgages with a DMP
Mortgages with Defaults
Mortgages After Bankruptcy
Remortgaging with Bad Credit
95% Mortgage Options with Bad Credit
