Buy to Let • Bad Credit
Had an Individual Voluntary Arrangement (IVA)? You still have Buy to Let options. Lenders assess whether your IVA is active, recently settled, or historic — plus your deposit and rental cover.
Shortcut: See our full guide → Buy to Let Mortgages with Bad Credit.
What Is an IVA?
- An IVA is a legally binding agreement with creditors to repay debts, usually over 5–6 years.
- It stays on your credit file for six years from the start date.
- Even after completion, some lenders ask for evidence of settlement.
Can You Get a Buy to Let Mortgage with an IVA?
| Your Situation | How Lenders Typically Respond |
|---|---|
| Active IVA | Very few lenders consider. You’ll need strong rent and a 35–40%+ deposit. |
| Recently settled | Some specialist lenders accept immediately after completion with ~30% deposit. |
| Settled 3+ years ago | Far more specialist options and sharper pricing. |
| 6+ years since start | IVA drops off file; approval becomes much easier. |
How Lenders Assess IVA Cases
- Status (active vs settled and when)
- Deposit / equity level
- Rental income coverage (often 125–145%)
- Overall recent credit behaviour
Case Studies
Case A — Active IVA
Paul was 4 years into an IVA but had saved a 40% deposit. One specialist lender approved a BTL using strong rental income and deposit as security.
Case B — Recently Settled IVA
Maria settled her IVA in 2022. A lender accepted applications immediately after settlement with a 30% deposit.
Case C — Historic IVA
David’s IVA started in 2016 and ended in 2022. By 2024 it had dropped from his file and he secured near‑mainstream rates with a 30% deposit.
Deposit & Rental Income
- Deposit: Standard BTL is 25%, but with an IVA expect 30–40%+.
- Rental stress: Rent must cover the mortgage at 125–145%; adverse cases may need more.
Related reading: How much deposit do I need for BTL with bad credit?
Practical Steps if You’ve Had an IVA
- Check your credit report — confirm IVA start/end dates.
- Get proof of settlement — completion certificate, creditor letters.
- Save a bigger deposit — 30–40%+ is common.
- Evidence rental income — tenancy agreements or agent letters.
- Use a broker — many accepting lenders 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 — Buy to Let After an IVA
Can I get a Buy to Let mortgage with an active IVA?
It’s very difficult, but a handful of lenders may consider with a strong deposit and rental income.
Do I need to wait 6 years after an IVA?
Not always. Some lenders accept straight after settlement, but options improve after ~3 years.
Will high street banks accept an IVA?
No — you’ll need a specialist lender.
How much deposit do I need after an IVA?
Typically 30–40% for adverse BTL.
Can strong rental income offset the IVA risk?
Yes — robust rental coverage can help persuade certain lenders.
