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.

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.

“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.”

Further Reading – Remortgaging with Bad Credit

Typical Waiting Periods by Credit Issue

Why Equity Makes a Difference

• High equity (25–40%) gives lenders security and increases approval chances, even with recent issues.
• Low equity (<10%) makes approval more difficult with fresh adverse.
• Time + equity is the winning combo for better pricing and choice.

Case Studies

Defaults (8 months)

Claire had two small defaults under £500 from 8 months ago. With 30% equity and clean conduct since, a specialist lender approved her remortgage.

IVA (2 years since completion)

Michael finished his IVA two years ago. With strong equity and supervisor confirmation, a specialist lender accepted him.

CCJ (10 months old)

Dan had a CCJ from 10 months ago but 40% equity. He took a slightly higher rate now, planning to switch to a better deal in 2–3 years.

Practical Steps to Improve Your Timing

• Check your credit files – know exact registration dates for defaults, CCJs and insolvencies.
• Mark your calendar – many issues drop after 6 years, but you may qualify sooner.
• Stay spotless – no new missed payments.
• Build equity – overpay where affordable or let time/property growth help.
• Review annually – what’s a “no” today could be a “yes” in 12–24 months.

Further Reading – Remortgaging with Bad Credit

What Is a DMP?

• An informal agreement with creditors to repay debts at a reduced rate (not legally binding like an IVA or bankruptcy).
• Usually appears on your credit file and can affect borrowing.
• Consistency matters: on‑time DMP payments strengthen your case.

Can You Remortgage with an Active DMP?

• Yes, with restrictions: a handful of specialist lenders accept active plans.
• Expect lenders to want at least 5–10% equity, sometimes more depending on the size of the plan and conduct.
• Pricing may be higher and lender choice smaller while the DMP is active.

Remortgaging After a Settled DMP

• More lenders open up 1–2 years post‑settlement, especially with clean credit since.
• At 6 years from the start date, DMP markers typically fall off your credit file.
• With strong equity and affordability, pricing can move closer to mainstream.

Equity & Loan‑to‑Value (LTV) Considerations

• The more equity, the safer the case appears. 25%+ equity opens up many more options, even with an active DMP.
• Under 10–15% equity can be challenging but isn’t always a dead end.

Practical Steps

• Keep all DMP payments on time; avoid new credit.
• Check all three credit files and correct any errors.
• Build equity where possible; reduce other commitments.
• Gather documents: ID, proof of address, income, and DMP statements.
• Use a broker – only a few lenders accept DMP cases and criteria change frequently.

“I was in a DMP and assumed remortgaging was off the table. Honest Mortgages found a lender who accepted me with 10% equity.”

Further Reading – Remortgaging with Bad Credit

How Debt Consolidation with a Remortgage Works

• Release equity via a remortgage and use it to clear unsecured debts (credit cards, loans, overdrafts).
• Swap multiple repayments for one monthly mortgage payment.
• Usually reduces outgoings, but may increase total interest over the life of the debt.

Benefits vs Risks

How Bad Credit Affects Consolidation

• Defaults / CCJs: Some lenders still consider, especially if they’re older or small.
• IVA or Bankruptcy: Harder, but not impossible if settled and equity is strong.
• Missed payments: Recent issues narrow the lender pool.
• Active DMP: A few lenders allow remortgaging to settle the plan, depending on equity and conduct.

Equity Is the Key

• More equity = more options. Many lenders prefer at least 20–30% equity for consolidation.
• Low equity plus recent adverse often leads to decline or higher pricing.

Case Studies

Credit Cards Cleared

Sarah had £15,000 on cards at high interest. With 40% equity and a 4‑year‑old CCJ, a specialist lender approved her remortgage. She now has one lower monthly payment and a clear plan to repay.

DMP Settled via Remortgage

James was in a DMP with £25,000 unsecured debt and 35% equity. A specialist lender accepted the case, allowing him to settle the DMP in full.

Practical Steps

• Work out your equity: current value vs mortgage balance.
• List all debts with balances, APRs, and payments.
• Check your credit files and correct errors before applying.
• Run the total‑cost maths — sometimes keeping debts separate is cheaper overall.
• Speak to a broker to compare specialist lenders and criteria.

Further Reading – Remortgaging with Bad Credit

What Is Bankruptcy and How Long Does It Stay on Your File?

• What it is: A legal process that writes off debts you can’t repay.
• Duration: Bankruptcy usually lasts for 12 months, after which you are discharged.
• Credit file impact: It remains on your credit report for six years from the start date.

Can You Remortgage During Bankruptcy?

• No. While you are bankrupt (within the 12‑month period), lenders will decline applications.
• Your finances are restricted during bankruptcy and you won’t meet standard lending criteria.

Remortgaging After Bankruptcy – The Timeline

How Much Equity Do You Need After Bankruptcy?

• Expect at least 25–30% equity. More equity lowers lender risk and materially improves your chances.
• Rates & fees: With adverse credit, expect higher rates and fees than mainstream products — improving as the bankruptcy ages and your profile strengthens.
• Ways to build equity: Overpay where affordable, reduce unsecured debts, and keep the property well‑maintained to support valuation.

Practical Steps If You’ve Been Bankrupt

• Give it time: Apply no sooner than 3 years post‑discharge unless there’s a compelling reason.
• Clean file housekeeping: Make sure bankruptcy is correctly recorded as discharged and keep all payments spotless since.
• Check all three credit files: Look for errors and mismatches across agencies before any application.
• Strengthen affordability: Lower commitments and stable income help with specialist assessments.
• Use a broker: Most receptive lenders are broker‑only and criteria change frequently.

“I thought bankruptcy meant no chance of a remortgage. Three years after discharge, Honest Mortgages found me a specialist lender who approved my case.”

Further Reading – Remortgaging with Bad Credit