IVA mortgage UK: can you get a mortgage with an IVA or DMP?

If you're searching for an IVA mortgage UK lenders will actually consider, it helps to start with what an IVA is and how it shows up on your credit file. An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors to repay some or all of your debts, usually over five or six years, arranged through a licensed Insolvency Practitioner.

Because an IVA is a form of personal insolvency, it has a significant impact on your credit file and on how mortgage lenders view your application. Most high-street lenders decline applications from anyone with a current or recent IVA, which is why specialist adverse credit lenders exist to fill this gap.

How long does an IVA stay on your credit file?

An IVA stays on your credit file for six years from the date it was registered, regardless of when it's actually settled or completed. This means that even if you clear your IVA early, the record remains visible to lenders for the full six-year period, though its impact tends to lessen the further you get from the start date. Further detail on how IVAs work is available from the government's Individual Voluntary Arrangements guidance.

A debt management plan (DMP) is an informal agreement between you and your creditors to repay your debts at a reduced monthly amount, usually arranged through a debt charity or a fee-charging provider. Unlike an IVA, a DMP isn't legally binding and doesn't involve a court process or an Insolvency Practitioner.

For mortgage purposes, this distinction matters. A DMP is generally viewed as a less severe form of financial difficulty than an IVA, and some specialist lenders are slightly more flexible with active or recently completed DMPs. That said, a DMP still appears on your credit file and still limits which lenders will consider you.

It's possible to apply for a mortgage while you're still in an active IVA or DMP, though your options are far more limited than once the plan has ended. Lenders willing to consider an active arrangement are a small, specialist minority, and the process is more involved.

If you're still in an IVA, you'll usually need written permission from your Insolvency Practitioner before taking on new credit, including a mortgage. This is because an IVA typically restricts your ability to borrow more than a set amount, often around £500, without formal consent.

One of the most common questions we hear is how long after an IVA or DMP someone can realistically get a mortgage. There's no single answer, but lender access and deposit requirements both tend to improve steadily the further you get from when the plan ended.

These figures are indicative only. Every specialist lender assesses applications individually, and your actual deposit requirement will depend on your income, the property, and your wider credit history. An advisor can give you a realistic picture once they understand your circumstances.

Deposit requirements for an IVA or DMP mortgage are generally higher than for a standard mortgage, particularly soon after the plan has ended. As the timeline above shows, deposits often start at 25% or more while a plan is active and can reduce over time as the record moves further into the past.

Rates for specialist adverse credit mortgages also tend to be higher than mainstream products, reflecting the additional risk lenders take on. Because rates are set individually by each specialist lender and change frequently, we can't quote figures here - an advisor can give you an accurate, up-to-date comparison once they understand your circumstances. What we can tell you is that rates typically move closer to standard market rates the longer ago your IVA or DMP ended.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. This is why it's worth speaking to a specialist advisor before committing to any mortgage, so you understand the full picture of what you can comfortably afford.

If you're worried about managing debt or mortgage repayments, independent and impartial guidance is available from MoneyHelper on 0800 138 7777.

In general, an IVA is harder to get a mortgage after than a DMP. Because an IVA is a formal insolvency process, lenders apply stricter criteria and more specialist lenders will decline an application outright. A DMP, being informal, is treated more like a sign of past financial difficulty than insolvency, so a slightly wider range of lenders may be willing to help, particularly once it's been settled for a year or more.

That said, this is a generalisation rather than a rule. A DMP that ran for many years with missed or reduced payments can look worse to a lender than an IVA that completed cleanly and on schedule. What matters most is the full picture: how the plan was managed, how it's recorded on your credit file, and how much time has passed since it ended. Either way, a specialist broker familiar with adverse credit mortgages will know which lenders are most likely to look favourably on your specific situation.

Having an IVA or DMP on your file doesn't rule out every route to homeownership. Depending on your circumstances, several options may be worth exploring alongside a standard residential purchase.

If debt consolidation is part of your goal, our guide to a debt consolidation mortgage explains how this works in more detail, and our guide to a remortgage with bad credit covers the remortgage route specifically. If your adverse credit includes other issues alongside an IVA or DMP, it's also worth reading about a mortgage with a CCJ or a mortgage with defaults, as lenders often assess these factors together.

Whatever stage you're at with your IVA or DMP, there are practical steps that can improve your chances before you apply for a mortgage.

Applying directly to a single lender with an IVA or DMP on your file can mean wasted applications and unnecessary credit searches, each of which can affect your credit score further. A Financial Conduct Authority-regulated broker compares a wide range of lenders, including specialist panels that aren't available directly to the public, and can direct your application towards lenders most likely to consider your circumstances.

You can check any broker's regulatory status on the Financial Conduct Authority register. Working with a regulated broker also means you have access to a formal complaints process if something goes wrong.

If you're dealing with ongoing debt problems as well as considering a mortgage, independent guidance is also available from Citizens Advice.