Mortgage Approved With a Completed IVA and Self-Employed Income
A case study showing how joint applicants secured a mortgage after completing an IVA, with self-employed income and missed payments on their credit file.
- Publication date
- Case ID:
- 145925027
Question:
"Can we get a mortgage if one of us has had an IVA and there are missed payments on our credit file?"
Customer situation
Joint applicants
Previous homeowner
One self-employed sole trader, one permanently employed
Around 15% deposit from personal savings
Standard residential purchase
One satisfied IVA, registered around 4 years ago and completed within the last 18 months
Ongoing arrears on an unsecured personal loan, with multiple missed payments during the last 2 years
Why This Wasn't Straightforward
The application included self-employed income, a recently completed IVA, and missed payments on unsecured credit. Several lenders declined due to credit score thresholds, loan-to-income limits, or policy restrictions on insolvency history.
The Outcome
Mortgage approved.
A specialist lender was willing to look beyond automated scoring and consider affordability, employment stability, and how the credit issues had evolved over time. Their criteria allowed for a more practical assessment of the household's position.
Key points
- Loan-to-value
- 85%
- Mortgage term
- 23 years
- Lender type
- Specialist lender with manual underwriting and flexible credit criteria
- Mortgage Adviser
- Matt Nurcombe
Who This May
Be Relevant For
Applicants looking for a mortgage after completing an Individual Voluntary Arrangement (IVA)
Buyers concerned an IVA is preventing mortgage approval, even though it is satisfied
Applicants declined for a mortgage due to IVA-related lender criteria
Buyers unsure how long after an IVA they may be eligible for a mortgage
Plain-English Summary
This case highlights that an IVA doesn't automatically close the door to home ownership. With the right lender, applications can be assessed on real-world affordability rather than rigid scoring models.