IVA and bankruptcy mortgages: getting a mortgage after insolvency

Yes, though the choice of lenders is narrow while an IVA or bankruptcy is recent. Some specialist lenders consider applicants once an IVA has been completed or a bankruptcy discharged, and a few consider an IVA still running. Mainstream lenders usually wait until the entry has dropped off the credit file.

An individual voluntary arrangement, or IVA, is a formal agreement to repay creditors over a set period, often 5 or 6 years, and it is recorded on the Individual Insolvency Register (Insolvency Service on GOV.UK, accessed 20 Oct 2026). Bankruptcy is a court process in which assets can be used to repay debts, and most people are discharged after 1 year (Insolvency Service on GOV.UK, accessed 20 Oct 2026).

An IVA stays on a credit file for 6 years from the date it started, even if it ends sooner (Insolvency Service on GOV.UK, accessed 20 Oct 2026). Bankruptcy stays on a credit file for 6 years from the date of the bankruptcy order (Insolvency Service on GOV.UK, accessed 20 Oct 2026). Lenders can see both while they remain.

The Insolvency Register entry for an IVA is removed 3 months after the arrangement ends (Insolvency Service on GOV.UK, accessed 20 Oct 2026).

Lenders often ask on the application form about any insolvency in recent years, and some ask about it ever having happened. The answers need to match what the credit file shows, and leaving out an old IVA or bankruptcy can lead to an offer being withdrawn.

Lenders check when the IVA or bankruptcy started and ended, whether it was completed or failed, what debts it covered and how credit has been managed since. A completed IVA with a clean record of payments afterwards is viewed more favourably than a failed one, and a discharged bankruptcy more favourably than one still running.

Deposit size matters too. A larger deposit lowers the loan-to-value and widens the choice of specialist lenders, while a small deposit narrows it further. Income, outgoings and any other borrowing are assessed in the usual way, because the mortgage still has to be affordable now and if rates rise.

An IVA does not always affect an existing mortgage, because many IVAs exclude the home and keep the mortgage payments going. The IVA terms may limit remortgaging or releasing equity, and the insolvency practitioner may need to agree any change. In bankruptcy, the home can form part of the estate and is handled by the trustee.

A joint mortgage application with someone who has an IVA or bankruptcy is assessed on both applicants' files. The partner with a clean record does not cancel out the other's history, though a lender may still consider the case.

How lenders treat adverse credit across every type of problem, from missed payments to insolvency, is set out in the adverse credit mortgages guide, which covers the wider market for applicants with past credit problems.

Mortgages for applicants with a recent IVA or bankruptcy are usually priced higher than standard mortgages, because the lender sees more risk. Pricing improves as the insolvency ages, as the deposit grows and as the credit file shows on-time payments since. Rates change often, so a dated quote on a specific case is the only reliable guide.

Fees can be higher too. Comparing the total cost over the deal period, including arrangement, valuation and broker fees, gives a fairer view than the headline rate. Moving to a mainstream deal once the entry has dropped off the file is a common plan.

Start by getting copies of all three credit files, checking that the IVA or bankruptcy shows the right dates and status, and that debts included in it are marked as settled or part of the arrangement. Getting a completion certificate for an IVA, or proof of discharge for bankruptcy, makes the lender's checks quicker.

Rebuilding credit with small, regular accounts paid on time helps show how money has been managed since. Saving a larger deposit and keeping bank statements clear of missed payments also helps. Brokers who arrange adverse credit cases can be compared on the adverse credit mortgage brokers page, by rating, reviews and region.