So you are in an individual voluntary arrangement which means you have agreed to a 5 year repayment plan to repay a proportion of the money you owe your creditors. You will be paying out a fixed amount each month from which the money will be divided between the companies you owe money to. You are now considering getting a mortgage and want to know if your IVA will affect you mortgage application.
The first thing you need to consider is that have your properly thought through the consequences of getting an IVA mortgage. An IVA will mean you will already have a percentage of your income going to service your IVA every month which will lower the amount you can otherwise borrow.
You will also need to consider your deposit. It will be very difficult if not impossible to find a lender who will give you an IVA mortgage in an adverse credit market without a deposit. You should be considering having a deposit of at least five percent, the higher the amount of deposit you have the more likely you will be to get a good mortgage deal.
With a poor credit rating already limiting you from many of the mainstream mortgages you will probably be limited to brokers and lenders who specialise in bad credit mortgages and poor credit mortgages. It will also be taken into account how far into your IVA you are or how recently your IVA has completed.
Whilst it is not impossible for you to get an IVA mortgage or IVA remortgage you will need to consider whether it is worth waiting until your IVA is settled and you are able to save a deposit. With an IVA you are going to be limited to mortgages with much higher interest rates and therefore higher monthly repayments.