Steps to Becoming Mortgage-Ready: What to Do if You’ve Had an IVA or Bad Credit
Buying your own home feels like a huge jump, especially if you’ve been through tough patch financially. You might have finished an IVA or faced bad credit, and it feels easy to assume homeownership sits out of reach. But here’s the truth: the past doesn’t have to hold you back. Every small step you make today can move you closer to picking up the keys to your new place.
Plenty of people turn their financial stories around. You can, too. With the right steps and a bit of patience, getting mortgage-ready becomes much more than a dream—it’s a real option, even after an IVA or tough credit history. Let’s break it down simply: here’s how you take back control and get set for homebuying success.
Understanding How IVAs and Bad Credit Affect Your Mortgage Options
An IVA, or Individual Voluntary Arrangement, is a formal agreement to pay back debts over time. Having bad credit means missed payments, defaults, or other money troubles have left a mark on your credit file. Lenders look carefully at this history because it’s a sign of risk. If you’re still in an active IVA, nearly all mortgage lenders will say no. Think of it like trying to run a marathon with a sprained ankle—possible, but not easy and definitely not fun.
An IVA stays on your credit report for six years from the date it’s approved, even if you finish paying it off earlier. The label shifts from “active” to “complete” once you’ve paid it off, but the impact sticks until the six years are up. During this time, your credit score takes a hit. After the six years, that record drops off your file, and the door to better mortgage options opens wider.
Even after an IVA or other credit slip-ups, you can get a mortgage—it just works a little differently. Lenders often ask for bigger deposits and charge higher interest to people with recent credit problems. Here’s what deposits could look like:
| IVA or Bad Credit Status | Typical Deposit Needed |
|---|---|
| Ongoing IVA | 30% + funds to clear IVA |
| IVA finished under 1 year | 20% |
| IVA finished 2-3 years ago | 15% |
| IVA finished over 3 years | 10% |
You may not get the same low rates as someone with perfect credit, but as you show better spending and repaying habits, your options grow. More time since your IVA means smaller deposits and better deals. You don’t need a spotless record, just progress and persistence.
Step-by-Step: What To Do Right Now To Become Mortgage-Ready
You can take action today to shift how lenders see you—not just a number, but someone working hard to improve. These are steps you can start immediately:
- Check and Fix Your Credit File
Use credit agencies like Experian, Equifax, or TransUnion. Look for errors or old defaults. If you spot something wrong, dispute it right away. Accuracy builds trust. - Join the Electoral Roll
Register your current address. Lenders use this to check your identity. Missing from the roll is a red flag to most banks. - Pay All Current Bills on Time
Even a single late payment can knock you back. Set up direct debits and reminders so nothing slips through the cracks. Every on-time payment rebuilds your score. - Save for a Bigger Deposit
The more you can put down, the better your chances. Aim for at least 10-15 percent if your IVA is years behind you. If your IVA was recent, you may need closer to 20 or even 30 percent. - Reduce Outstanding Debts
Lenders don’t just check your credit score. They look at your current debts. The less you owe now, the safer you look to them. Pay down credit cards and avoid new loans. - Show Stability in Your Finances
Keep your job record clean. Lenders like at least 12 months in one role. Avoid switching jobs or addresses unless needed. - Build Good Habits
Don’t use payday loans or take on new, high-interest debts. Keep a close eye on spending. Make small, regular savings if possible. Every good habit counts as a green flag.
Here’s why these matter: mortgage lenders want to see proof that you’ve learned from the past and won’t repeat old mistakes. The more proof you can offer, the stronger your application looks.
Choosing the Right Lender and Getting Expert Support
Don’t try to go solo here. Not all banks or building societies offer mortgages to people who have had an IVA or bad credit. Some lenders are more flexible, but most deals come from specialist lenders—not always the names you see on the high street.
A specialist mortgage broker helps you find out which lenders are open to your situation. If you make lots of applications, you leave a trail on your credit file, which can worry lenders. Instead, use a broker who knows the market. They’ll match you to deals that fit your profile, sometimes with lenders you’d never have heard of.
Be open and honest about your past. The more your broker knows, the better they can help. Hiding missed payments or old debts only makes things harder down the road. A good broker turns years of know-how into real options and can make getting a yes much more likely.
Conclusion
Turning bad credit or an old IVA into a new mortgage isn’t out of reach—it’s just the long way around. Each step you take, from checking your credit to saving a little more, adds up. Sometimes it feels slow, but every improvement moves you closer to those keys.
Stay patient and persistent. Ask for help if you need it, especially from specialist brokers who understand your track record. Trust the steps, and keep checking your progress. Homeownership after bad credit is possible when you stick with proven habits and believe in your ability to change your future. Start today—your keys are waiting.
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